Sell a Business for the Best Price
Selling a Party Paper Goods Business
There's a right way and a wrong way to sell a party paper goods business these days. More than ever before, it's important for sellers to know the tactics and techniques that are being used to maximize sales price and achieve desired sale outcomes.
Business-for-sale markets are less dependent on economic conditions than most sellers think they are.
There is no simple way to sell a business. But the most prepared party paper goods business sellers are achieving fair market value and more for their companies through persistence and the application of sound selling techniques.
Sale Preparation Timeframes
There are no effective shortcuts for selling a party paper goods business. Since buyers prefer to see evidence of future cash flow, you'll want to to strategically lock in cash flows and increase profits before you list the business. You'll also need to create financial reports, operations manuals, and other documents to create the perception of a turnkey party paper goods business operation. At a minimum, plan on spending six months preparing your party paper goods business for the marketplace. A more likely scenario is that it will take more than a year to create the conditions necessary to receive the maximum sale price.
Seller Financing
Capital is hard to come by these days. Banks and other lending institutions aren't eager to lend to unproven and undercapitalized party paper goods 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.
Working with Accountants
Accountants lay the financial groundwork for a business sale. Before your party paper goods business goes on the market, you should sit down with your accountant to clarify your financial goals and the tax consequences of a sale. A professional audit can ease buyer concerns and amp up the value of your financial presentation. With seller financing becoming common, professional accountants are playing a more central role in negotiations and buyer qualification.
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