Exit Planning Tips
Selling a Hand and Power Tools Business
Few entrepreneurs relish the idea of selling a business in a struggling economy. Yet hand and power tools businesses continue to be sold at a brisk pace, outperforming the sales of many other types of businesses.
Although we're optimistic about the economy, we also recognize that it takes the right strategy to sell a hand and power tools business in today's market.
Yet what many sellers don't appreciate is that a down economy can present the perfect opportunity to sell a hand and power tools business.
The Best Person to Sell Your Hand & Power Tools Business
An unassisted business sale is a double-edged sword. Without a doubt, you have the most at stake in the outcome of your sale. That makes you the most passionate advocate for your hand and power tools business in the business-for-sale marketplace. However, your close connection to your company can also be a drawback. Nearly all sellers have an inflated sense of their company's value. At a minimum, conduct an independent appraisal of the hand and power tools business to gain an objective sense of fair market value.
Preparing Family Members
Since your business was a family affair, your family members should also be involved in its sale 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 hand and power tools business has to include ample communication and shared decision-making.
Closing Strategies
Today's hand and power tools business buyers expect sellers to offer concessions to persuade them to close the deal. Concessions can consist of non-cash as well as cash incentives. When you've reached your limit on price, consider offering non-cash concessions to encourage a commitment from the buyer. In the current economy, seller financing is becoming common in hand and power tools business sales. If the prospect is inexperienced or lacks credentials in the industry, you can also offer to stay with the business for a specified period of time to help the new owner get on his feet and introduce him to your network of industry contacts.
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