Mastering Niche Market Exit Planning
Selling a Night Club
You've heard the naysayers - now isn't the time to sell a night club. But what they don't know is that many entrepreneurs see night clubs as a smart business investment.
The business-for-sale market is just as frustrating for buyers as it is for sellers these days. Although there are plenty of entrepreneurs who want to buy a night club, capital restrictions are holding them back.
The business-for-sale market is extremely dynamic. So if you're waiting for the perfect market conditions to sell your night club, you could be waiting a while. If your business is ready to be sold, the time to sell is now. You just need to know your buyers and structure the deal accordingly.
Team-Based Negotiation Strategies
It's not unusual for night club sellers to feel overwhelmed when they negotiate the sale of their business. Negotiation is a chess game, best played with the resources and backend support of a negotiation team. A negotiation team comprised of trusted advisors and senior business leaders is essential in helping you devise a winning negotiation strategy. More importantly, a negotiation team can serve as a sounding board -- an objective presence that prohibits your personal emotions from clouding your judgment or sabotaging your efforts to negotiate a successful deal.
How Much Does It Cost to Sell a night club?
The calculation of your asking price should include a buffer to cover the expense of the sale process. Although they can significantly increase the final sale price, brokers typically receive a 10% commission. Attorneys, accountants and appraisers work for a flat fee that can range from hundreds to thousands of dollars. Furthermore, your time has value, so you may need to include a personal compensation consideration in your expense estimates.
Laying the Groundwork
Effective night club preparation focuses on communicating value to prospective buyers. Professional business brokers understand buyers and know how to properly communicate a night club to the marketplace. Specifically, brokers can advise you about the preparation of financial statements and other documents buyers expect to see in a premium night club opportunity.
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