Exit Planning Techniques By Market
Selling a Forestry Equipment and Supplies Business
Don't believe anyone who tells you it's easy to sell a forestry equipment and supplies business. A lot of things need to happen before you can successfully exit your business. But with a few tips, you can keep your shirt and your sanity in the sale of your business.
A business exit is always a trying experience. But when you need to sell your forestry equipment and supplies business in a depressed economy, the challenges can seem insurmountable.
More than a few forestry equipment and supplies business owners fail to receive fair market value for their businesses. Smart sellers know the value of their companies are prepared to identify buyers who are willing to pay top dollar.
Selling a Forestry Equipment & Supplies Business to an Employee
Employee sales have pros and cons. A faithful employee may have the motivation and ability to continue to operate the business. If you need to sell quickly, the timeframe is condensed in an employee sale because you don't need to track down a buyer. Yet most employees lack the means to buy their employer's business at or near the asking price. Seller financing is one way to get around the capital deficit of an employee-based forestry equipment and supplies business sale, as long as you are willing to vet the employee's credit worthiness the same as any other buyer.
Preparing Your Forestry Equipment & Supplies Business for Sale
First-time business sellers sometimes don't realize that the success or failure of their sale is determined before it hits the market. Profitable forestry equipment and supplies business sales begin with a comprehensive strategy that incorporates planning, preparation and market positioning. Even though it may take years to adequately position your forestry equipment and supplies business, the amount of preparation you perform will have direct correlation on asking and sale prices. But your efforts to improve your company's position and profitability will only be effective if you invest similar effort into the preparation of accurate financial statements for buyers.
Post-Sale Details
Due diligence has ended and you're ready to close on the sale of your forestry equipment and supplies business. All that stands between you and the sale proceeds is a few signatures, right? Not so fast. There are several details that still need to be addressed. What will the ownership transition look like? Are you prepared to deal with the tax consequences of receiving a significant sum of money in exchange for your business? How will you prepare your employees for your inevitable exit from the business? You, your employees and the buyer all have a stake in making sure the sale ends as smoothly as possible. If possible, work with the buyer to create a transition strategy that minimizes the impact on the business and your workforce.
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