Sell a Business for the Best Price
Selling a Pulp and Pulp Products Business
We hear from a lot of business owners who are timid about listing their pulp and pulp products business. Despite the mood of the market, we think there are still opportunities to receive a good price for your pulp and pulp products business. Here's what you need to know . . .
You need to get a good price for your pulp and pulp products business. To get there, you'll need to set realistic expectations and follow a deliberate selling strategy.
In order to market a pulp and pulp products business now, sellers need to make a strong case for buyers to purchase at or near the asking price.
How to Skillfully Address Buyer Concerns
Buyers can present challenges, especially during the due diligence stage. Due diligence preparation can mitigate the irritation factor, but you should still expect to field numerous buyer concerns before closing. Avoid answering buyer concerns with vague generalities. Instead, be as specific as possible, even if it means doing additional research before offering a response. If due diligence drags on too long, your broker may need to intervene.
The Best Person to Sell Your Pulp & Pulp Products Business
There are benefits and drawbacks to handling the sale of your pulp and pulp products business on your own. Without a doubt, you have the most at stake in the outcome of your sale. That makes you the most passionate advocate for your pulp and pulp products business in the business-for-sale marketplace. However, your close connection to your company can also be a drawback. Nearly all sellers have an inflated sense of their company's value. At a minimum, conduct an independent appraisal of the pulp and pulp products business to gain an objective sense of fair market value.
Sale Preparation Timeframes
There are no effective shortcuts for selling a pulp and pulp products 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 pulp and pulp products business can rarely be ready for the marketplace in less than six months. However, to command the highest price, you'll probably need to spend one to two years preparing and positioning your business for buyers.
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