Mastering Niche Market Exit Planning
Selling a Nitrogen Business
Economic uncertainty influences the timing of many nitrogen business sales. But based on what we're seeing in the business-for-sale marketplace, we don't think economic conditions should deter you from putting your nitrogen business on the market.
Business sellers sometimes face a long, hard struggle to get fair market value for their companies. But with the adequate preparation, your nitrogen business can attract buyers who recognize its potential.
You'll always have an excuse for not putting your business on the market. Any nitrogen business can be sold at any time -- you just need to know how to influence the right buyers.
Seller Financing
Capital is hard to come by these days. Financial institutions have tightened up their lending policies, making it difficult for inexperienced and undercapitalized entrepreneurs to buy nitrogen businesses. As a result, buyers expect sellers to finance a significant portion of the sale. Although 100% seller financing isn't recommended, sellers are financing up to 70% of the sale price to close deals.
Legal Considerations
It's obvious that you're going to need to hire an attorney to finalize the sale of your nitrogen business. Tackling the legal nuances and tax ramifications of a sale without a first-rate business lawyer is an invitation for disaster. It's helpful to introduce your attorney to your broker to facilitate a smooth sale and a productive working relationship.
Preparing Your Nitrogen Business for Sale
The outcome of a business sale is largely determined prior to a market listing. Successful nitrogen business listings are the culmination of a preparation process that began months or even years ahead of time. Even though it may take years to adequately position your nitrogen business, the amount of preparation you perform will have direct correlation on asking and sale prices. But your efforts to improve your company's position and profitability will only be effective if you invest similar effort into the preparation of accurate financial statements for buyers.
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