Sell a Business for the Best Price
Selling a Paper Cutting Knives Business
Maybe you're counting on your paper cutting knives business to be a stepping stone to your next big business venture. Maybe it's your retirement fund. Either way, you need to maximize the price it gets in the business-for-sale marketplace.
Business-for-sale markets are less dependent on economic conditions than most sellers think they are.
Success is a factor of preparation, execution and a keen eye for the market. As a business seller, you need to go into the process with the mental goal of presenting your business in the best possible light.
Laying the Groundwork
A successful paper cutting knives business sale begins with careful planning. Although you are convinced your business has value in the marketplace, the planning process establishes a framework for communicating its value to prospective buyers. A first-rate business broker can give your business an edge by facilitating the preparation process and orienting your presentation toward today's buyers. Financial statements, appraisals, operations manuals and other documents lay the foundation for your paper cutting knives business sale, creating incentives for prospects to agree to a higher asking price.
Pros & Cons of a Sale to an Employee
There are both benefits and drawbacks to selling a paper cutting knives business to an employee. There are some perks to selling the business in-house. 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. Most of the time, employees also expect owners to finance a large portion of the sale. So if you aren't willing to finance the sale or need to get top dollar for your paper cutting knives business, a sale to an employee is probably not a possibility.
Brokerage Benefits
Brokers give paper cutting knives business sellers distinct advantages in the marketplace. First-rate brokers are extremely skilled at communicating your company's strengths to prospective buyers. More importantly, brokers have the ability to identify serious buyers and maintain confidentiality throughout the sale process. Typical brokerage rates (a.k.a. success fees) run 10% of the final price - an expense that is usually recouped through a higher sales price and less time on the market.
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