Exit Planning Tips
Selling a Health Food Store
We hear it all the time: 'This economy is a hostile environment for a business sale.' However, health food stores haven't been deterred. In fact, we think this economy is a ripe environment for a health food store sale.
Business sellers are notorious for second-guessing themselves about the right time to put their companies up for sale.
In order to market a health food store now, sellers need to make a strong case for buyers to purchase at or near the asking price.
Leveraging Industry Connections
Today's health food store buyers can be found in a variety of locations. Online business-for-sale databases have value, although they appeal to an exceptionally wide base of prospects. More focused prospects are typically found within industry networks. When leveraging industry relationships for sales prospects, you'll need to be cognizant of the potential for competitors to use knowledge of your sale against you in the marketplace. Use good sense in restricting the flow of information within the industry and focusing your efforts toward trusted industry allies.
When Is the Right Time to Sell?
When is it the right time to sell your health food store? If you're asking the question, now may be the time to put your business on the market. Opinions are mixed and some consultants are advising health food store sellers to put their plans on hold until the economy fully rebounds. We aren't nearly as pessimistic about the health food store marketplace. The inventory of what we consider to be quality health food stores is actually low right now and there is room for the right sellers to realize substantial gains with investment-conscious buyers.
Workforce Concerns
As a business owner, you want to keep you employees informed about your plans; as a seller it's in your best interest to keep your employees in the dark for as long as possible. The more people who know that the business is on the market, the riskier the sale becomes. If you keep your employees out of the loop too long, it's inevitable that misinformation will filter throughout your workplace. Consider informing your key employees first, followed by the rest of your workforce later in the process. Maintain a positive tone in your conversations and answer your employees questions as completely as you can without jeopardizing the sale.
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