Exit Planning Techniques By Market
Selling a Feed Ingredients Business
Maybe you're counting on your feed ingredients business to be a stepping stone to your next big business venture. Maybe it's your retirement fund. Either way, you need to maximize the price it gets in the business-for-sale marketplace.
Business sellers are notorious for second-guessing themselves about the right time to put their companies up for sale.
The business-for-sale market is extremely dynamic. That's why we think it's important for feed ingredients business owners to know that it's possible to sell a business in any economy. To improve sale outcomes, you will simply need to tailor your feed ingredients business to today's buyers.
Economic Considerations
When you sell a feed ingredients business, there are a number of variables you need to consider. Interest rates, spending, inflation, and other variables directly influence how long your feed ingredients business will be on the market as well as its sales price. If you base the decision to sell your feed ingredients business solely on the market, you may be in for a long wait. A much better approach is to focus on the factors that always attract buyers and investors. In our experience, the most important factors in the sale of a feed ingredients business have little to do with the economy.
Working with Appraisers
An experienced appraiser is part and parcel of a successful feed ingredients business sale. Leading industry appraisers equip sellers with a value gauge that can be accessed during negotiations. If you're disappointed with the appraiser's estimate of your company's worth, you have the option of seeking a second opinion. However, it's more often the case that you will need to adjust your expectations of your business's value to buyers.
Sweetening the Deal
Like it or not, prospective buyers are going to ask you to make certain concessions in the sale of your feed ingredients business. Concessions can consist of non-cash as well as cash incentives. When you've reached your limit on price, consider offering non-cash concessions to encourage a commitment from the buyer. A limited amount of training and mentoring may seem inconsequential to you, but to a young feed ingredients business owner, they can be critical launching points for their ownership journey.
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