Sell a Business for the Best Price
Selling a Paper Boxboard Business
The decision to sell your paper boxboard business isn't something that should be taken lightly, especially these days. If a business exit is on the horizon, you'll want to check out our suggestions for staying ahead of the market.
According to the experts, there is currently a large volume of shadow inventory in the paper boxboard business market -- businesses that are waiting to be listed until the economy recovers.
You'll always have an excuse for not putting your business on the market. Selling a paper boxboard business isn't easy, but we believe sellers can achieve their goals in any economic environment.
Sale Costs
The calculation of your asking price should include a buffer to cover the expense of the sale process. Good brokerage takes a 10% success fee off the top of the final sale price. 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.
Understanding Market Timing
Now may be the best time to sell a paper boxboard business. With interest rates at all-time lows, it's easy to see why paper boxboard businesses are an appealing investment opportunity for savvy investors. When the economy recovers there will be more paper boxboard business buyers on the market, but higher interest rates could present challenges. 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.
Pros & Cons of a Sale to an Employee
Employee sales have pros and cons. A key employee may seem like a natural sales prospect. If you need to sell quickly, the timeframe is condensed in an employee sale because you don't need to track down a buyer. 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 paper boxboard 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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