Business Exit Planning
Selling a Motion Picture Film Business
You've heard the naysayers - now isn't the time to sell a motion picture film business. But what they don't know is that many entrepreneurs see motion picture film businesses as a smart business investment.
Personal and professional concerns surround the sale of a motion picture film business. In our experience, a common owner concern is how the sale will affect customers and employees.
The economy hasn't squashed the market for motion picture film businesses. Not surprisingly, buyers expect to receive value for their dollars - and that means sellers need to demonstrate that their businesses are capable of delivering anticipated returns.
Moving On
The decision to sell your motion picture film business can't be made without adequate consideration of what will happen after the sale. many sellers find themselves ill-equipped to handle life after their business and fail to understand that their future plans can influence the sale process. In today's market, many buyers expect seller financing - a concession that might not be a possibility for sellers whose next step requires the entire proceeds at the time of the sale.
Seller Concessions
Seller concessions are becoming more commonplace in business-for-sale transactions. The most common seller concession is seller financing. With entrepreneurs struggling to secure capital, you may be the buyer's only source of financing. Other common seller concessions include staying on the mentor the new owner, non-compete clauses, and working as a consultant to mitigate the impact of new ownership.
Handling Unexpected Outcomes
If you're smart, you entered your motion picture film business with a set of assumptions about what it would achieve. However, no one told the marketplace about your expectations. The outcome of your sale will be determined by market forces - not by your personal circumstances or desires. Despite your best efforts, you need to prepare yourself for the possibility of receiving less than you expected from the sale of your motion picture film business. If buyers don't seem to be willing to meet your expectations, consult with your broker to modify your strategy and market approach.
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