Exit Planning Tips
Selling a Home Based Business
There's a right way and a wrong way to sell a home based business even if the seller has previous business sales experience. More than ever before, it's important for sellers to know the tactics and techniques that are being used to maximize sales price and achieve desired sale outcomes.
Most entrepreneurs have the skills and stamina to endure and prosper during the sale ofa home based business.
At Gaebler, we think waiting for the economy to rebound is a mistake for many business owners. Selling a home based business isn't easy, but we believe sellers can achieve their goals in any economic environment.
Buyer Concessions
Sellers aren't the only ones who can make concessions in a business sale. In many instances, sellers can request buyer concessions. Often, buyer concessions represent financial incentives that the seller receives in exchange for providing a non-cash benefit (e.g. training, financing, etc.. Asset exclusions, retained ownership shares and long-term contracts with another of the seller's companies can also be leveraged to extract concessions from buyers.
Post-Sale Details
As your home based businesssale nears completion, there is a lot of work remaining to be done. There are several details that still need to be addressed. What will the ownership transition look like? Are you prepared to deal with the tax consequences of receiving a significant sum of money in exchange for your business? How will you prepare your employees for your inevitable exit from the business? If there are pending details that still need to ironed out, address them ASAP to ensure a smooth closing and transition.
Understanding Market Timing
Now may be the best time to sell a home based business. With interest rates at all-time lows, it's easy to see why home based businesses are an appealing investment opportunity for savvy investors. Sooner or later, rates will rise, increasing the risk for prospective buyers of home based businesses. So we see market timing as a concern that can be easily mitigated by applying fundamental sales strategies and adequately preparing your company for buyers.
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