Business Exit Planning
Selling a Motion Picture Production Services and Facilities Business
Planning and execution can dramatically influence the price you receive for your motion picture production services and facilities business.
Business sellers are notorious for second-guessing themselves about the right time to put their companies up for sale.
There are many factors involved with the decision to sell a business. Knowledgeable entrepreneurs understand that market timing isn't nearly as important as other factors in a motion picture production services and facilities business sale. The key is to go into the sale with your eyes open and with complete awareness of market condition.
Sale Costs
In a motion picture production services and facilities business sale, pricing is based on a number of factors, including the costs incurred during the sale. Hiring a broker is a mixed bag because although brokers can increase the sale price, they also take a 10% fee. Professional consultations can also represent a significant expense during the course of a motion picture production services and facilities business sale. Furthermore, your time has value, so you may need to include a personal compensation consideration in your expense estimates.
Pre-Sale Checklist
The upfront time you investment in the sale of your motion picture production services and facilities business will pay big dividends at closing. Perhaps the most important pre-sale consideration is to right-size your expectations to the realities of the market. After you have consulted with a business broker to right size your expectations, you'll need to add several items to your checklist, including financial statement preparation, pre-sale appraisals, financial planning, market positioning and other tasks designed to communicate value to prospective buyers.
Preparing Your Employees
Business sellers face a dilemma when it comes to their employees. You're concerned about confidentiality, and rightfully so. However, the longer the selling process drags on, the more likely it is that rumors will begin to circulate throughout your workforce. So at some point you will have to resign yourself to the idea of telling some or all of your employees that you have listed the motion picture production services and facilities business on the market. Maintain a positive tone in your conversations and answer your employees questions as completely as you can without jeopardizing the sale.
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