Business Exit Planning
Selling a Motion Picture Properties Business
Many business leaders say that now isn't the time to try to sell a motion picture properties business. Don't be deterred by economic uncertainty. There are plenty of reasons why this is the right time to put your motion picture properties business on the market.
You won't find any magic formulas for selling a motion picture properties business, especially while the market is struggling to overcome the perceptions created by a down economy.
At Gaebler, we think that's a mistake because with adequate preparation and the right sale strategy, this might be the best time to put your motion picture properties business on the market.
Timing the Market
Timing is everything when it comes to selling a motion picture properties business. A depressed economy means lower interest rates; lower interest rates increase the number of investors willing to take a chance on motion picture properties businesses. As the interest rates rise, it will be more difficult for buyers to make the numbers work in their favor. So we see market timing as a concern that can be easily mitigated by applying fundamental sales strategies and adequately preparing your company for buyers.
Broker vs. No Broker
When selling a motion picture properties business, you have two choices: Hire a broker to facilitate the sale or perform the sale unassisted. Is there a cost associated with hiring a broker? Sure - about 10% of the final sale prices. But a good broker will make selling your motion picture properties business much less painful. You can also expect to receive a higher sales price for your business in a broker-assisted deal.
Selling a Motion Picture Properties Business to an Employee
Employee sales have pros and cons. A faithful employee may have the motivation and ability to continue to operate the business. Since the worker already knows the ins and outs of the business, due diligence should be a breeze, not to mention the fact that you won't have to wait months or years for the right buyer to emerge on the open marketplace. Yet most employees lack the means to buy their employer's business at or near the asking price. Seller financing is one way to get around the capital deficit of an employee-based motion picture properties business sale, as long as you are willing to vet the employee's credit worthiness the same as any other buyer.
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