Business Exit Planning
Selling a Meat Rendering Business
There are no guarantees when you sell a meat rendering business. But our tips will equip you with the information you need to increase the likelihood of a successful sales outcome.
We hear it all the time: "I'm waiting until the economy recovers to list my business."
There is no simple way to sell a business. But the most prepared meat rendering business sellers are achieving fair market value and more for their companies through persistence and the application of sound selling techniques.
Brokerage Benefits
There are many reasons why hiring a broker makes sense in meat rendering business sales. Right out of the gate, brokers know how to help their clients properly prepare their businesses for a sale. More importantly, brokers have the ability to identify serious buyers and maintain confidentiality throughout the sale process. Brokerage isn't cheap. But even though you can spend as much as 10% of the sale price on a good broker, you'll likely achieve decent ROI through an improved final sale price.
Average Preparation Time
There are no effective shortcuts for selling a meat rendering business. Since buyers prefer to see evidence of future cash flow, you'll want to to strategically lock in cash flows and increase profits before you list the business. You'll also need to create financial reports, operations manuals, and other documents to create the perception of a turnkey meat rendering business operation. At a minimum, plan on spending six months preparing your meat rendering business for the marketplace. A more likely scenario is that it will take more than a year to create the conditions necessary to receive the maximum sale price.
Negotiation 101
As a business seller, you have to be at the top of your negotiating game. In a meat rendering business sale, knowledge is power -- the more you know about your business and prospective buyers, the easier it is to sway negotiations in your favor. But before you can negotiate effectively, you need to have a clear sense of your minimum sale requirements. If you lack clarity about your goals, you're guaranteed to fall short of achieving of them. A negotiating strategy is essential because it not only establishes parameters, but also creates a plan for overcoming buyer objections and impasses.
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