Exit Planning Tips
Selling a Hair Replacement Business
Business-for-sale markets are susceptible to a variety of influences. As you know, the hair replacement business industry has seen more than its share of fluctuations in business values. Sellers have adapted their strategies to accommodate changing market realities, incorporating a handful of proven techniques for selling a hair replacement business during challenging economic times.
Business sellers are notorious for second-guessing themselves about the right time to put their companies up for sale.
Success is a factor of preparation, execution and a keen eye for the market. As a business seller, you need to go into the process with the mental goal of presenting your business in the best possible light.
Brokerage Benefits
There are many reasons why hiring a broker makes sense in hair replacement 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. 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.
Advertising Your Sale
The best hair replacement business sales incorporate comprehensive advertising plans. But confidentiality issues are a hurdle you'll need to address before you put your hair replacement business on the market. If sale information leaks out, competitors can use it to steal customers and circulate negative messages about your business throughout the industry. Business brokers are skilled at publicizing hair replacement business sales while maintaining the confidentiality that is critical to your business.
Selling a Hair Replacement Business to an Employee
Employee sales have pros and cons. A faithful employee may have the motivation and ability to continue to operate the business. Since the worker already knows the ins and outs of the business, due diligence should be a breeze, not to mention the fact that you won't have to wait months or years for the right buyer to emerge on the open marketplace. Yet most employees lack the means to buy their employer's business at or near the asking price. Most of the time, employees also expect owners to finance a large portion of the sale. So if you aren't willing to finance the sale or need to get top dollar for your hair replacement business, a sale to an employee is probably not a possibility.
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