Exit Planning Techniques By Market
Selling a Fire Hose Business
Most businesses are susceptible to economic conditions and fire hose businesses are no exception. But in some cases, a down economy can actually improve saleability. All it takes is a strategy to identify solid prospects and convert them to buyers.
Most business sellers are interested in disposing of their businesses as quickly as possible. But that's not how a fire hose business sale works.
It may require a little finesse, but if you're prepared to take the next step in your entrepreneurial career then it's time to brave the fire hose business market and locate potential buyers ASAP.
Broker vs. No Broker
The decision of whether or not to hire a business broker should never be taken lightly. Business brokers typically charge a 10% "success fee" when they sell a business, but they also handle many of the hassles that are associated with selling a fire hose business. You can also expect to receive a higher sales price for your business in a broker-assisted deal.
How to Skillfully Address Buyer Concerns
Buyers can present challenges, especially during the due diligence stage. The questions fire hose business ask during due diligence are designed to alleviate their concerns about the business and should be promptly addressed by the seller. To protect yourself, don't offer an answer until you are sure the information you are providing is 100% accurate. Refer to the Letter of Intent to determine how to wrap up due diligence and move the buyer on to closing.
Preparing for What's Next
What will happen if your fire hose business is a success? If you aren't sure what's next, you could be in trouble because future plans and selling strategy are inextricably connected. In today's market, many buyers expect seller financing - a concession that might not be a possibility for sellers whose next step requires the entire proceeds at the time of the sale.
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