Exit Planning Techniques By Market
Selling a Franchise Businesses Business
Selling a franchise businesses business doesn't happen overnight. It takes a deliberate process to get top dollar for your company.
Business buyers are a timid lot, even more so now that they are facing an uncertain economic landscape.
Yet what many sellers don't appreciate is that a down economy can present the perfect opportunity to sell a franchise businesses business.
Finding Prospects
Whether you know it or not, prospective buyers for your franchise businesses 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. Although some franchise businesses business sellers advertise their businesses in general classifieds, the most successful sales are those in which professional brokers seek out likely buyers. If you aren't generating interest in the general marketplace, consider approaching companies that sell complementary products or are closely situated in your supply chain.
Advantages of Hiring a Broker
There are many reasons why hiring a broker makes sense in franchise businesses business sales. Right out of the gate, brokers know how to help their clients properly prepare their businesses for a sale. More importantly, brokers have the ability to identify serious buyers and maintain confidentiality throughout the sale process. Although you will pay a fee for brokerage, it's generally worth it because the end result will be a higher sales prices and more favorable terms.
Seller Financing
The shortage in today's marketplace isn't interested buyers -- it's capital. Thanks to more stringent commercial lending requirements, sellers have become de facto lenders, providing the financing buyers need to get their feet in the door. As you prepare for the sale of your franchise businesses business, expect to be asked to finance a substantial part of the sale price.
Share this article
Additional Resources for Entrepreneurs