Exit Planning Techniques By Market
Selling a Flour Mills Business
You've heard the naysayers - now isn't the time to sell a flour mills business. But what they don't know is that many entrepreneurs see flour mills businesses as a smart business investment.
The flour mills business-for-sale marketplace is a nuanced environment, full of pitfalls for sellers who aren't prepared for its demands.
The business-for-sale market is extremely dynamic. So if you're waiting for the perfect market conditions to sell your flour mills business, you could be waiting a while. If your business is ready to be sold, the time to sell is now. You just need to know your buyers and structure the deal accordingly.
Sale Costs
In a flour mills business sale, pricing is based on a number of factors, including the costs incurred during the sale. Although they can significantly increase the final sale price, brokers typically receive a 10% commission. Attorneys, accountants and appraisers work for a flat fee that can range from hundreds to thousands of dollars. Furthermore, your time has value, so you may need to include a personal compensation consideration in your expense estimates.
Preparing Family Members
Many sellers embarked on their flour mills business sale without adequately considering the impact it will have on their families. In many cases, we find that even though business owners are equipped to handle their ownership exit, their family members are having a hard time letting go of the business, especially if family life has revolved around the demands of the flour mills business. Unless everyone is prepared for it, the sale could have a devastating effect on your family. Subsequently, selling a flour mills business has to include ample communication and shared decision-making.
Business Assets
It's incumbent on buyers to commission their own appraisal of your flour mills business's physical assets. Most sellers, however, conduct a pre-sale appraisal to gain an accurate gauge of asset value prior to negotiations. A professional appraisal is a necessity because it gives you the information you need to negotiate a sale price. When you conduct your appraisal of your assets, note their condition and include it in the information packet you prepare for prospective buyers.
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