Business Exit Planning
Selling a Music Management Business
Is the economy still a little shaky for a business sale? Sure it is. Yet music management businesses continue to sell at a brisk pace, regardless of the economy.
You survived all the ups and downs of owning a business. Next, you'll need to prepare yourself to address the rigors of selling a music management business.
The business-for-sale market is extremely dynamic. Knowledgeable entrepreneurs understand that market timing isn't nearly as important as other factors in a music management business sale. To improve sale outcomes, you will simply need to tailor your music management business to today's buyers.
Tips for Seller Financing
Capital is hard to come by these days. Banks and other lending institutions aren't eager to lend to unproven and undercapitalized music management business buyers regardless of the business's potential. Rather than abandon their plans entirely, many buyers are pursuing finance concessions from sellers. Although 100% seller financing isn't recommended, sellers are financing up to 70% of the sale price to close deals.
Factoring In Economic Variables
Several economic factors can affect the sale of a music management business. A combination of economic conditions and market sentiment can complicate your sale. If you base the decision to sell your music management business solely on the market, you may be in for a long wait. A much better approach is to focus on the factors that always attract buyers and investors. One thing is for sure - buyers are paying more attention to your company's profitability and growth potential than they are to the latest quarterly economic indicators.
Handling Unexpected Outcomes
If you're smart, you entered your music management 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 music management 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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