Exit Planning Tips
Selling a Home Shopping Business
Unfortunately, many sellers are waiting to list their home shopping businesses until the economy fully rebounds. We think that's a mistake because for the right buyers, home shopping businesses are a great investment.
You've invested too much in your home shopping business to let it be sold for less than its worth. But unless you adequately prepare for the sale, some lucky buyer may walk away with a huge discount.
Eventually, it will the time will come to exit your business. When that happens, your future plans will be dependent on your ability to receive the highest possible sale price for your home shopping business.
Equipment and Inventory Concerns
It's incumbent on buyers to commission their own appraisal of your home shopping business's inventory, equipment, and physical assets. But you'll need to commission your own appraisal before you put your home shopping business on the market to arm yourself with information for the negotiation phase. A professional appraisal is a necessity because it gives you the information you need to negotiate a sale price. A pre-listing appraisal also gives you the opportunity to document the condition of your home shopping business's assets and possible even make repairs or upgrades to increase the total value of the operation.
Signs You're in Over Your Head
Many home shopping business are tempted to save brokerage fees by selling their businesses on their own. Without brokerage, the risk of your sale going off-course is increased. If you decide to go solo and your business has been on the market for more than six months without a single buyer inquiry, it's time to hire a professional business broker. Lack of buyer enthusiasm or persistence indicates that something is wrong. The remedy is professional brokerage or a consultation with more experienced sellers.
Finding Prospects
Many sellers don't realize how many prospective buyers there are for their businesses. We frequently see qualified buyers emerge from the seller's network of business and personal acquaintances. In other cases, sellers take a proactive approach to finding likely buyers and contacting them directly. Competitors may seem like natural prospects and they are. The downside is that they won't pay top dollar and will probably absorb your company into their own.
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