Business Exit Planning
Selling a Metal Products Dealers Business
Few entrepreneurs relish the idea of selling a business in a struggling economy. Yet metal products dealers businesses continue to be sold at a brisk pace, outperforming the sales of many other types of businesses.
Personal and professional concerns surround the sale of a metal products dealers business. But have you considered how your customers, vendors and employees will handle the sale?
If your exit strategy involves selling a metal products dealers business now, business sellers may need to apply a combination of incentives and techniques.
Brokerage Benefits
There are many reasons why hiring a broker makes sense in metal products dealers business sales. First, business brokers are in tune with the realities of the market and are skilled at helping owners make their businesses attractive to premium buyers. Second, a good business broker is a master at confidentiality locating metal products dealers business sale prospects and guiding sellers through negotiations. 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.
What to Expect in a Metal Products Dealers Business Sale
The sale of a metal products dealers business can be a rollercoaster of emotions. One minute you'll be elated at the possibility of moving on the next stage of your life and the next minute you'll be nostalgic about the memories of your time at the helm of your business. Given your personal investment, you may also experience disappointment in the market's assessment of your company's value. Although it isn't easy, you can mitigate the emotional impact of a metal products dealers business sale by setting realistic expectations before you list your business.
Seller Concessions
Seller concessions are becoming more commonplace in business-for-sale transactions. By far, seller financing is the most sought-after concession, especially in the current economic environment. Capital is scarce, causing new entrepreneurs to rely on sellers to finance at least part of the purchase price. If you are unwilling or unable to offer financing, be prepared to offer other types of concessions to close the deal.
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