Smart Exit Planning Strategies for Niche Markets
Selling a Generator Dealers Business
A good business is about more than dollars and sense. To make your generator dealers business what it is today, you've had to fully invest yourself in its success. To see your ownership role through to completion, you will need to exhibit similar diligence in selling your company.
The business-for-sale market is just as frustrating for buyers as it is for sellers these days. Although there are plenty of entrepreneurs who want to buy a generator dealers business, capital restrictions are holding them back.
Most generator dealers businesses are good business opportunities, a fact that is not going unnoticed by today's discerning buyers.
Sale Costs
In a generator dealers business sale, pricing is based on a number of factors, including the costs incurred during the sale. Good brokerage takes a 10% success fee off the top of the final sale price. Professional consultations can also represent a significant expense during the course of a generator dealers business sale. Furthermore, your time has value, so you may need to include a personal compensation consideration in your expense estimates.
Average Timeframes
It's rarely possible to sell a generator dealers business in a month or two. Although asking price and other factors contribute to sale time, it's difficult to predict how long your business will be on the market before you locate the right buyer. To adequately prepare your business listing, plan on spending six months to a year prior to listing. Even though it's conceivable that an attractive opportunity could sell in weeks, an immediate flood of offers could indicate that the business is underpriced.
Buyer Concessions
Sellers aren't the only ones who can make concessions in a business sale. In many instances, sellers can request buyer concessions. Although this scenario frequently plays out around seller financed deals, it's possible to push for a higher sales price or other form of compensation if you agree to mentor the buyer for a specified period of time. You can also choose to exclude certain items like equipment or inventory from the deal if the buyer isn't willing to meet your price expectations. By selling excluded assets on the secondary market, you can compensate for an anemic sale price.
Share this article
Additional Resources for Entrepreneurs