Exit Planning Techniques By Market
Selling a Furniture Components Business
Selling a furniture components business doesn't happen overnight. It takes a deliberate process to get top dollar for your company.
When the economy recovers, we expect to see a sudden influx of furniture components 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.
In our opinion, that kind of thinking doesn't make sense. In fact, this might be the perfect time to sell a furniture components business. Here's how to do it . . .
Leveraging Seller Concessions
Seller concessions are becoming more commonplace in business-for-sale transactions. In a down economy sellers become bankers; an unwillingness to finance at least part of the sale of a furniture components business can translate into a dead deal. Capital is scarce, causing new entrepreneurs to rely on sellers to finance at least part of the purchase price. If you are unwilling or unable to offer financing, be prepared to offer other types of concessions to close the deal.
Preparing Family Members
Many sellers embarked on their furniture components business sale without adequately considering the impact it will have on their families. Unfortunately, families often experience turmoil during a sale even when the primary owner is convinced it's the right decision. The sale of the business will likely result in new family dynamics. Subsequently, selling a furniture components business often begins with a family conversation and a mutual decision to move on the next stage of life.
How Much Does It Cost to Sell a furniture components business?
In a furniture components 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. 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.
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