Business Exit Planning
Selling a Meal Preparation Services Business
There's a right way and a wrong way to sell a meal preparation services business in today's economy. We'll tell you how to keep your sale and your future plans on track.
The business-for-sale market is just as frustrating for buyers as it is for sellers these days. Although there are plenty of entrepreneurs who want to buy a meal preparation services business, capital restrictions are holding them back.
Fortunately for sellers, forward-thinking entrepreneurs continue to be attracted to meal preparation services businesses that exhibit strong financials and potential for future growth.
Sweetening the Deal
Like it or not, prospective buyers are going to ask you to make certain concessions in the sale of your meal preparation services business. Although a lower asking price is the ultimate seller concession, a price reduction isn't the only way to attract serious buyers. When you've reached your limit on price, consider offering non-cash concessions to encourage a commitment from the buyer. A limited amount of training and mentoring may seem inconsequential to you, but to a young meal preparation services business owner, they can be critical launching points for their ownership journey.
Average Preparation Time
There are no effective shortcuts for selling a meal preparation services business. For starters, the financials need to demonstrate a track record of profitability and growth. Next, the business will need to be documented in professional financial statements and manuals that facilitate the ownership transition. Unless you have already started planning for your meal preparation services business sale, it's going to take at least six months to prepare your business. A more likely scenario is that it will take more than a year to create the conditions necessary to receive the maximum sale price.
Working with Appraisers
An experienced appraiser is part and parcel of a successful meal preparation services business sale. Armed with a professional appraisal, both you and your broker can enter the negotiation stage with confidence. Following the appraisal, you may choose to delay your sale until you can increase the value of assets and revenue.
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