Exit Planning Advice
Selling a Karaoke Business
Few entrepreneurs relish the idea of selling a business in a struggling economy. Yet karaoke businesses continue to be sold at a brisk pace, outperforming the sales of many other types of businesses.
The decision to sell a karaoke business is never easy. In addition to the personal enjoyment you received from the business, you probably have concerns about what will happen to the people who made your karaoke business a success.
At Gaebler, we think waiting for the economy to rebound is a mistake for many business owners. Selling a karaoke business isn't easy, but we believe sellers can achieve their goals in any economic environment.
Selling to a Family Member
There is no easy way to sell a karaoke business, not even to a family member. Often, a sale to a family member creates fractures within the family. Whether you offer the family member special concessions or not, either the buyer or other family members may take offense. The best advice: if a family sale is a possibility, it needs to be handled objectively, with ample input from third-party advisors.
Realistic Expectations
Objectivity is a rare commodity in a business sale. Your estimate of your company's worth is probably skewed by your emotions and your close, personal connection to the business. Although it may be a hard pill to swallow, you need to find a way to introduce objectivity into your sale. A business broker can be a valuable resource in right-sizing your expectations and preparing you for market realities.
Benefits of Third-Party Assistance
At some point, you're going to need help selling your karaoke business. Brokers can be an important resource for your sale, especially if you are unfamiliar with the business-for-sale marketplace. Additionally, you may want to hire professionals for legal, valuation and other functions before you put your business on the market. In most cases, your sale strategy will call for the assistance of outside professionals at various stages throughout the process. Early recruitment makes it easier to execute your strategy without unnecessary interruptions.
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