Exit Planning Techniques By Market
Selling a Feed Mills Equipment and Supplies Business
Selling a feed mills equipment and supplies business doesn't happen overnight. It takes a deliberate process to get top dollar for your company.
You're optimistic about the economy and so are we. Now the challenge is to convert business buyers who may have a more skeptical outlook.
Fortunately for sellers, forward-thinking entrepreneurs continue to be attracted to feed mills equipment and supplies businesses that exhibit strong financials and potential for future growth.
Timing the Market
Worried about timing? Believe it or not, this could be an advantageous time to put a feed mills equipment and supplies 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 feed mills equipment and supplies businesses. Sooner or later, rates will rise, increasing the risk for prospective buyers of feed mills equipment and supplies businesses. 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.
The Best Person to Sell Your Feed Mills Equipment & Supplies Business
There are benefits and drawbacks to handling the sale of your feed mills equipment and supplies business on your own. Few people know your business as well as you do. The problem is that your passion for your business can also sabotage your sale. Nearly all sellers have an inflated sense of their company's value. At a minimum, conduct an independent appraisal of the feed mills equipment and supplies business to gain an objective sense of fair market value.
Sweetening the Deal
Today's feed mills equipment and supplies business buyers expect sellers to offer concessions to persuade them to close the deal. Concessions can consist of non-cash as well as cash incentives. In fact, many concessions have little or no financial impact, but go a long way toward making the deal more palatable to young entrepreneurs. In the current economy, seller financing is becoming common in feed mills equipment and supplies business sales. If the prospect is inexperienced or lacks credentials in the industry, you can also offer to stay with the business for a specified period of time to help the new owner get on his feet and introduce him to your network of industry contacts.
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