Exit Planning Techniques By Market
Selling a Floor Machine Sales and Rental Business
Your floor machine sales and rental business has been good to you. 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. There are lots of buyers who want to own a floor machine sales and rental business, but have limited capital to get their foot in the door.
Market timing is a constantly moving target. Knowledgeable entrepreneurs understand that market timing isn't nearly as important as other factors in a floor machine sales and rental business sale. You just need to know your buyers and structure the deal accordingly.
Average Preparation Time
There are no effective shortcuts for selling a floor machine sales and rental business. Buyers want to see growth trends, healthy profits and other variables that increase the likelihood of long-term success. Next, the business will need to be documented in professional financial statements and manuals that facilitate the ownership transition. At a minimum, plan on spending six months preparing your floor machine sales and rental business for the marketplace. If you can afford to wait, we recommend investing a few years in improving your business's financial position before you put it on the market.
Sale Costs
In a floor machine sales and rental business sale, pricing is based on a number of factors, including the costs incurred during the sale. Good brokerage takes a 10% success fee off the top of the final sale price. Attorneys, accountants and appraisers work for a flat fee that can range from hundreds to thousands of dollars. Likewise, you'll need to consider how much it will cost to promote the sale as well as the lost time it will take for you and your team to navigate the sale process.
Negotiation Teams
Business sellers are sometimes surprised to find themselves in the position of negotiator-in-chief. When you sell your floor machine sales and rental business, your business brokers may or may not be willing to conduct negotiations for you. Negotiation is a chess game, best played with the resources and backend support of a negotiation team. A negotiation team comprised of trusted advisors and senior business leaders is essential in helping you devise a winning negotiation strategy. More importantly, a negotiation team can serve as a sounding board -- an objective presence that prohibits your personal emotions from clouding your judgment or sabotaging your efforts to negotiate a successful deal.
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