Exit Planning Techniques By Market
Selling a Fabric Craft Business
Planning and execution can dramatically influence the price you receive for your fabric craft business.
In a down economy, many fabric craft 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 fabric craft businesses that are actually for sale.
The economy hasn't squashed the market for fabric craft businesses. Like always, unprofitable and poorly positioned businesses struggle to find buyers while sellers who have invested time and effort to prepare their sale are being rewarded in the marketplace.
Timing the Market
Now may be the best time to sell a fabric craft business. With interest rates at all-time lows, it's easy to see why fabric craft businesses are an appealing investment opportunity for savvy investors. As the interest rates rise, it will be more difficult for buyers to make the numbers work in their favor. So we see market timing as a concern that can be easily mitigated by applying fundamental sales strategies and adequately preparing your company for buyers.
Buyer Identification
It's difficult to predict where the buyer of your fabric craft business will come from. Avoid pigeon-holing your search to a single buyer category. Although it's helpful to target promotional tactics to likely buyers, allow for some exposure to the broader market. networking may also prove to be a valuable resource for identifying prospective buyers, but only to the extent that it can be done discreetly.
Advantages of Hiring a Broker
There are many reasons why hiring a broker makes sense in fabric craft business sales. Right out of the gate, brokers know how to help their clients properly prepare their businesses for a sale. Even more, the best brokers have a track of record of discreetly identifying likely buyers and contacting them on your behalf. 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.
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