Exit Planning Tips
Selling a Honing and Lapping Business
When it's time to sell your honing and lapping business, your future plans depend on your ability to get the highest possible sales price. Here's how to do it . . .
Business sellers are notorious for second-guessing themselves about the right time to put their companies up for sale.
However, serious buyers also understand the value of a good honing and lapping business. Financial statements and ROI are essential in converting modern honing and lapping business prospects into buyers.
Sale Documents
In a honing and lapping business sale, the Letter of Intent contains the vital elements of the deal between the buyer and the seller . By the time the deal reaches the final contract, many of its features are set in stone. Never sign a Letter of Intent until it has been properly reviewed by your attorney and you are in complete agreement with everything it contains.
Understanding Market Timing
Timing is everything when it comes to selling a honing and lapping business. Although the economy is generally struggling, low interest rates make honing and lapping businesses more attractive to entrepreneurs who want to get in the game. When the economy recovers there will be more honing and lapping business buyers on the market, but higher interest rates could present challenges. 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.
Negotiation 101
It's critical to negotiate from a position of strength. More often than not, the person with the most knowledge will come out on top in a honing and lapping business negotiation. But great negotiation begins with knowing yourself. What is the realistic price range for your honing and lapping business? What is the minimum amount you're willing to settle on? Are you willing to offer seller financing or other concessions to close the deal? If you can't answer these questions, you're simply not ready to sit down at the negotiation table yet. If you aren't sure what you need, put negotiations on hold until you gain a clearer understanding of your own deal parameters.
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