Business Exit Planning
Selling a Music Distributors Business
There's a right way and a wrong way to sell a music distributors business even if the seller has previous business sales experience. More than ever before, it's important for sellers to know the tactics and techniques that are being used to maximize sales price and achieve desired sale outcomes.
In a down economy, many music distributors business sellers wait to list their businesses until they see signs that the economy has rebounded, making it difficult to accurately evaluate the number of music distributors businesses that are actually for sale.
The business-for-sale market is extremely dynamic. So if you're waiting for the perfect market conditions to sell your music distributors business, you could be waiting a while. If your business is ready to be sold, the time to sell is now. To improve sale outcomes, you will simply need to tailor your music distributors business to today's buyers.
The Best Person to Sell Your Music Distributors Business
As the owner, you are both the best and worst person to sell your music distributors business. Without a doubt, you have the most at stake in the outcome of your sale. That makes you the most passionate advocate for your music distributors business in the business-for-sale marketplace. But your knowledge and personal insights about the music distributors business are also the problem. Nearly all sellers have an inflated sense of their company's value. At a minimum, conduct an independent appraisal of the music distributors business to gain an objective sense of fair market value.
Preparing Your Employees
As a business owner, you want to keep you employees informed about your plans; as a seller it's in your best interest to keep your employees in the dark for as long as possible. The more people who know that the business is on the market, the riskier the sale becomes. However, the longer the selling process drags on, the more likely it is that rumors will begin to circulate throughout your workforce. When that happens, it's best to have a frank conversation with your team rather than allowing rumors to circulate through the organization. Your employees will undoubtedly have many questions about their future with the company. Try to answer their questions to the best of your ability, but avoid making any promises that you are not authorized to make.
Maintaining Objectivity
Emotions run high during the sale of a music distributors business. Your estimate of your company's worth is probably skewed by your emotions and your close, personal connection to the business. Although it may be a hard pill to swallow, you need to find a way to introduce objectivity into your sale. A business broker can be a valuable resource in right-sizing your expectations and preparing you for market realities.
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