Business Exit Planning
Selling a Mail Order and Catalog Sales Business
Maybe you're counting on your mail order and catalog sales business 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.
Business-for-sale markets are less dependent on economic conditions than most sellers think they are.
Yet what many sellers don't appreciate is that a down economy can present the perfect opportunity to sell a mail order and catalog sales business.
When Is the Right Time to Sell?
If you're feeling like your tenure as the owner of the mail order and catalog sales business is coming to an end, the time to sell is now. Some experts are telling mail order and catalog sales business owners to wait for a better economy to put their business on the market. But despite the negativity that exists in some sectors, if you have a desire to sell your mail order and catalog sales business now, there is a high probability that you can sell it in the current market. The inventory of what we consider to be quality mail order and catalog sales businesses is actually low right now and there is room for the right sellers to realize substantial gains with investment-conscious buyers.
Seller Financing
The shortage in today's marketplace isn't interested buyers -- it's capital. Banks and other lending institutions aren't eager to lend to unproven and undercapitalized mail order and catalog sales business buyers regardless of the business's potential. Rather than abandon their plans entirely, many buyers are pursuing finance concessions from sellers. Although 100% seller financing isn't recommended, sellers are financing up to 70% of the sale price to close deals.
Legal Considerations
There is no way around the requirement to hire professional legal assistance when you sell your mail order and catalog sales business. A good lawyer serves a variety of functions during the process. In addition to reviewing the letter of intent, sales contract, and other documents, your attorney should be capable of advising you about due diligence and the tax consequences of the sale. We recommend hiring an attorney early in the process to gain insights about the legal consequences of various sale outcomes.
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