Exit Planning Techniques By Market
Selling a Farm Produce Business
Don't believe anyone who tells you it's easy to sell a farm produce business. A lot of things need to happen before you can successfully exit your business. But with a few tips, you can keep your shirt and your sanity in the sale of your business.
Business sellers sometimes face a long, hard struggle to get fair market value for their companies. But with the adequate preparation, your farm produce business can attract buyers who recognize its potential.
Many farm produce business owners fail to receive fair market value for their businesses. With the right strategy, your sale doesn't have to end that way.
When to End Negotiations
The negotiation stage of a farm produce business can seem never-ending. But sooner or later, someone needs to bring negotiations to a close. Unfortunately, that responsibility often falls on the seller. A lull in negotiations may be part of the buyer's strategy. Then again, it may be a sign that the search for common ground is a lost cause. If you are adequately prepared, you'll know what your bottom line is -- and if the buyer is unwilling to meet your bottom line requirements or if negotiations are stalled, it's time to step back from the negotiating table and re-evaluate your options.
Emotional Considerations
It's impossible to predict the emotional highs and lows you will experience during the sale of your farm produce business. Given your personal investment, you may also experience disappointment in the market's assessment of your company's value. Although it isn't easy, you can mitigate the emotional impact of a farm produce business sale by setting realistic expectations before you list your business.
How Much Does It Cost to Sell a farm produce business?
You'll need to incorporate the cost of the sale into the calculation the minimum price you are willing to receive for your farm produce business. Good brokerage takes a 10% success fee off the top of the final sale price. Depending on your circumstances, you may also incur substantial expenses in hiring legal, appraisal and accounting professionals. If you need to compensate employees to assist with the sale, their services should also be considered.
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