Exit Planning Techniques By Market
Selling a Farm Equipment Rental and Leasing Business
There are no guarantees when you sell a farm equipment rental and leasing business. But our tips will equip you with the information you need to increase the likelihood of a successful sales outcome.
The process of selling a farm equipment rental and leasing business can be one of the most stressful experiences of your entrepreneurial career.
Does that mean selling your farm equipment rental and leasing business will be a piece of cake? No -- but you might be surprised to learn that the farm equipment rental and leasing businesses that are selling these days are finding success though simple, common sense selling strategies.
The Best Person to Sell Your Farm Equipment Rental & Leasing Business
As the owner, you are both the best and worst person to sell your farm equipment rental and leasing business. On the one hand, no one knows your business better than you do. When it comes to earnings potential, asset condition, and other considerations, you are the world's leading expert on your company. The problem is that your passion for your business can also sabotage your sale. You see your company's potential. But buyers don't pay for potential - they pay for current market value. At a minimum, conduct an independent appraisal of the farm equipment rental and leasing business to gain an objective sense of fair market value.
Leveraging Seller Concessions
Seller concessions are becoming more commonplace in business-for-sale transactions. The most common seller concession is seller financing. With entrepreneurs struggling to secure capital, you may be the buyer's only source of financing. If you are unwilling or unable to offer financing, be prepared to offer other types of concessions to close the deal.
Laying the Groundwork
A successful farm equipment rental and leasing business sale begins with careful planning. Although you are convinced your business has value in the marketplace, the planning process establishes a framework for communicating its value to prospective buyers. In our experience, it pays to solicit the advice of a professional business broker as soon as possible. A good broker will guide you through the preparation stage and make sure you've covered all the bases. Specifically, brokers can advise you about the preparation of financial statements and other documents buyers expect to see in a premium farm equipment rental and leasing business opportunity.
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