Exit Planning Techniques By Market
Selling a Farm Implements Business
You've learned a lot during your tenure as a farm implements business owner. Now the trick is to convince cautious buyers that your operation is worth the asking price.
Most business sellers are interested in disposing of their businesses as quickly as possible. But that's not how a farm implements business sale works.
Too often farm implements business sellers fail to receive fair market value for their businesses. That's unfortunate because all it takes to get a fair price in today's market is ample planning and an awareness of what's important to buyers.
Timing the Market
Worried about timing? Believe it or not, this could be an advantageous time to put a farm implements business up for sale. A depressed economy means lower interest rates; lower interest rates increase the number of investors willing to take a chance on farm implements businesses. 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.
Benefits of Third-Party Assistance
Rarely, if ever, do owners sell a farm implements business without outside assistance. The enlistment of a qualified business broker is an excellent first step. Additionally, you may want to hire professionals for legal, valuation and other functions before you put your business on the market. The early recruitment of external resources reduces your risk and results in a more predictable final outcome.
Seller Concessions
Seller concessions are becoming more commonplace in business-for-sale transactions. Not surprisingly, seller financing is routinely requested by today's buyers. Traditional lenders and investors are gun shy - and that makes sellers a logical funding source for many buyers. 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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