Smart Exit Planning Strategies for Niche Markets
Selling a Grinding Wheels Business
A lot can go wrong during the sale of a grinding wheels business these days. We'll tell you how to keep your sale and your future plans on track.
The buzz in the marketplace is that now isn't the right time to sell a grinding wheels business. Consequently, sellers are holding their businesses off the market until they are sure the market will sustain their asking prices.
Success is a factor of preparation, execution and a keen eye for the market. But for business sellers, the process begins with having the right mental attitude.
Pros & Cons of a Sale to an Employee
Employee sales have pros and cons. A key employee may seem like a natural sales prospect. 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 grinding wheels business sale, as long as you are willing to vet the employee's credit worthiness the same as any other buyer.
Preparing for What's Next
What will happen if your grinding wheels business is a success? Although next steps may seem inconsequential, they actually play an important role in shaping the structure of the sale of your grinding wheels business. In today's market, many buyers expect seller financing - a concession that might not be a possibility for sellers whose next step requires the entire proceeds at the time of the sale.
Selecting a Broker
Good business brokers inevitably produce better business sales. In the grinding wheels business industry, experience is a must-have characteristic for qualified brokerage. The chemistry you have with your broker is a consideration. If you don't connect with a specific broker, move on to someone else - even if the first broker looks great on paper.
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