Exit Planning Tips
Selling a Home Improvement Store
Maybe you're counting on your home improvement store to be a stepping stone to your next big business venture. Maybe it's your retirement fund. Either way, you need to maximize the price it gets in the business-for-sale marketplace.
You won't find any magic formulas for selling a home improvement store, especially while the market is struggling to overcome the perceptions created by a down economy.
Too often home improvement store owners fail to receive fair market value for their businesses. With the right strategy, your sale doesn't have to end that way.
Sale Documents
In a home improvement store sale, the Letter of Intent contains the vital elements of the deal between the buyer and the seller . The price described in the Letter of Intent may fluctuate based on information that is revealed during due diligence, but the inclusion of new requirements in the final contract could be a deal killer. For sellers, that makes a close review of the Letter of Intent more than a formality - it's a critical juncture on the path to closing.
Why Confidentiality Matters
In the business-for-sale universe, publicity translates into risk. If you are rigorous about maintaining a confidential sale, there is little risk in putting your home improvement store on the market. Eventually, word will leak out. When that happens, it can damage your standing with customers and vendors. Successful sales walk a fine line between total confidentiality and aggressive promotion. Brokers and consultants can mitigate the risk by implementing confidential sale techniques.
Sale Preparations for Your Home Improvement Store
The outcome of a business sale is largely determined prior to a market listing. Successful home improvement store sales begin with a comprehensive strategy that incorporates planning, preparation and market positioning. Even though it may take years to adequately position your home improvement store, the amount of preparation you perform will have direct correlation on asking and sale prices. Additionally, you'll need time to compile financials and other information that buyers will expect to receive.
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