Sell a Business for the Best Price
Selling a Protective Covers and Cases Business
Few entrepreneurs relish the idea of selling a business in a struggling economy. Yet protective covers and cases businesses continue to be sold at a brisk pace, outperforming the sales of many other types of businesses.
The buzz in the marketplace is that now isn't the right time to sell a protective covers and cases business. Consequently, sellers are holding their businesses off the market until they are sure the market will sustain their asking prices.
Many business owners don't know that protective covers and cases businesses are still a hot commodity, to the extent that sellers have properly prepared them for the marketplace.
Average Preparation Time
There are no effective shortcuts for selling a protective covers and cases 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. Next, the business will need to be documented in professional financial statements and manuals that facilitate the ownership transition. Since all of this takes time and effort, a protective covers and cases business can rarely be ready for the marketplace in less than six months. 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 Concessions
It's becoming more difficult to sell a protective covers and cases business without considering seller concessions. The most common seller concession is seller financing. Traditional lenders and investors are gun shy - and that makes sellers a logical funding source for many buyers. Other common seller concessions include staying on the mentor the new owner, non-compete clauses, and working as a consultant to mitigate the impact of new ownership.
Tips for Working with A Business Broker
Brokerage is a mainstay of the business-for-sale marketplace. Brokerage is particularly common in the protective covers and cases business-for-sale market, where aggressive selling strategies are the norm. However, your broker will still expect you to materially participate in the sale of your business. Successfully brokered sales are based on solid relationships between brokers and sellers as well as the strict execution of a common selling strategy.
Share this article
Additional Resources for Entrepreneurs