Exit Planning Tips
Selling a Horse Feed and Supplies Business
A good business is about more than dollars and sense. To make your horse feed and supplies business what it is today, you've had to fully invest yourself in its success. But the hard work isn't done yet. Before you can make a graceful exit, you will have to invest yourself in your business sale.
Economic data is scary stuff for small business owners. But quarterly data dumps don't impact horse feed and supplies business sales nearly as much as sale strategy.
If your exit strategy involves selling a horse feed and supplies business now, sellers need to make a strong case for buyers to purchase at or near the asking price.
Moving On
So you've decided to sell your horse feed and supplies business. That's great -- but have you considered what's next? Are you moving on to another business venture? Are you retiring? Although next steps may seem inconsequential, they actually play an important role in shaping the structure of the sale of your horse feed and supplies business. We frequently encounter business sellers who haven't thought enough about their futures to know whether certain concessions (e.g seller financing) are a real possibility. As a result, they make bad decisions during the sale and experience less-than-optimal outcomes.
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.
Broker vs. No Broker
When selling a horse feed and supplies business, you have two choices: Hire a broker to facilitate the sale or perform the sale unassisted. Is there a cost associated with hiring a broker? Sure - about 10% of the final sale prices. But a good broker will make selling your horse feed and supplies business much less painful. You can also expect to receive a higher sales price for your business in a broker-assisted deal.
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