Exit Planning Techniques By Market
Selling a Felt and Felt Products Business
You've learned a lot during your tenure as a felt and felt products business owner. The next step is to position your business for the demands of the business-for-sale marketplace.
The business-for-sale market is just as frustrating for buyers as it is for sellers these days. Although there are plenty of entrepreneurs who want to buy a felt and felt products business, capital restrictions are holding them back.
However, serious buyers also understand the value of a good felt and felt products business. So for felt and felt products business sellers, today's market is all about convincing buyers that the numbers make their companies worth the asking price.
Negotiation 101
There's no room for error when you negotiate the sale ofa felt and felt products business. Information is the key to a great felt and felt products business negotiation. But before you can negotiate effectively, you need to have a clear sense of your minimum sale requirements. If you lack clarity about your goals, you're guaranteed to fall short of achieving of them. If you aren't sure what you need, put negotiations on hold until you gain a clearer understanding of your own deal parameters.
Finding Prospects
Whether you know it or not, prospective buyers for your felt and felt products business are all around you. In fact, there is a good chance you already know several individuals or companies that might be interested in buying your business for a decent price. We frequently see qualified buyers emerge from the seller's network of business and personal acquaintances. In other cases, sellers take a proactive approach to finding likely buyers and contacting them directly. Competitors may seem like natural prospects and they are. The downside is that they won't pay top dollar and will probably absorb your company into their own.
Professional Appraisals
Next to your broker, a skilled appraiser is the person most capable of adding value to the price of your felt and felt products business. By hiring an appraiser to conduct a thorough appraisal of tangible and non-tangible assets prior to listing, you get a measure of the true worth of your business. Although the appraised value of your business may not be the same as the sales price, you gain valuable insight that can be used to your advantage 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.
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