Niche Exit Planning Strategies
Selling a Diving Instruction Business
Is the economy still a little shaky for a business sale? Sure it is. Yet diving instruction businesses continue to sell at a brisk pace, regardless of the economy.
In a down economy, many diving instruction business sellers wait to list their businesses until they see signs that the economy has rebounded, making it difficult to accurately evaluate the number of diving instruction businesses that are actually for sale.
A business sale is always a sophisticated transaction and if you aren't prepared for it, your diving instruction business sale could have an unexpected outcome. To stay on course, you'll need sound strategy and meticulous execution on your side.
Moving On
The decision to sell your diving instruction business can't be made without adequate consideration of what will happen after the sale. many sellers find themselves ill-equipped to handle life after their business and fail to understand that their future plans can influence the sale process. In today's market, many buyers expect seller financing - a concession that might not be a possibility for sellers whose next step requires the entire proceeds at the time of the sale.
Advantages of Hiring a Broker
Brokers give diving instruction business sellers distinct advantages in the marketplace. First, business brokers are in tune with the realities of the market and are skilled at helping owners make their businesses attractive to premium buyers. More importantly, brokers have the ability to identify serious buyers and maintain confidentiality throughout the sale process. Typical brokerage rates (a.k.a. success fees) run 10% of the final price - an expense that is usually recouped through a higher sales price and less time on the market.
Leveraging Seller Concessions
In the current marketplace, seller concessions can make the difference between a business sale and a diving instruction business that languishes on the market for months or even years. By far, seller financing is the most sought-after concession, especially in the current economic environment. Capital is scarce, causing new entrepreneurs to rely on sellers to finance at least part of the purchase price. As an alternative, clearly state that seller financing is not an option and consider offering other concessions to see the sale through to its completion.
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