Exit Planning Techniques By Market
Selling a Furniture Buyers Business
Your furniture buyers business is a tangible reminder of the passion and dedication you've invested in your entrepreneurial career. But the hard work isn't done yet. Before you can make a graceful exit, you will have to invest yourself in your business sale.
When the economy recovers, we expect to see a sudden influx of furniture buyers businesses in the business-for-sale marketplace. Although these companies have been for sale, their owners have resisted listing them until a better economy materializes.
If your exit strategy involves selling a furniture buyers business in this environment, business sellers may need to apply a combination of incentives and techniques.
Timing the Market
Now may be the best time to sell a furniture buyers business. A depressed economy means lower interest rates; lower interest rates increase the number of investors willing to take a chance on furniture buyers businesses. When the economy recovers there will be more furniture buyers business buyers on the market, but higher interest rates could present challenges. So we see market timing as a concern that can be easily mitigated by applying fundamental sales strategies and adequately preparing your company for buyers.
Advantages of Hiring a Broker
A good broker can offer several benefits to business sellers. 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. Typical brokerage rates (a.k.a. success fees) run 10% of the final price - an expense that is usually recouped through a higher sales price and less time on the market.
Equipment and Inventory Concerns
It's incumbent on buyers to commission their own appraisal of your furniture buyers business's physical assets. Your appraisal should occur before you put your business on the market. A professional appraisal is a necessity because it gives you the information you need to negotiate a sale price. During your appraisal process, you should also note the condition of your assets. Cost-effective repairs can then be made before your list your furniture buyers business.
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