Optimizing Business Exits
Selling a Race Car Parts, Equipment, and Supplies Retail Business
It's a misconception that no one is buying race car parts, equipment, and supplies retail businesses these days. Savvy entrepreneurs see race car parts, equipment, and supplies retail business opportunities as a path to short-term profits and long-term growth. There aren't any guarantees, but if you adhere to fundamental business sale concepts, you can likely get a good price for your business.
The economy isn't the only thing that is uncertain these days. So are race car parts, equipment, and supplies retail business buyers, many of whom are waiting to pull the trigger on their next acquisition.
Nothing lasts forever and you will ultimately be faced with the task of selling your company. When that happens, your future plans will be dependent on your ability to receive the highest possible sale price for your race car parts, equipment, and supplies retail business.
Sale Costs
The calculation of your asking price should include a buffer to cover the expense of the sale process. Although they can significantly increase the final sale price, brokers typically receive a 10% commission. Attorneys, accountants and appraisers work for a flat fee that can range from hundreds to thousands of dollars. Likewise, you'll need to consider how much it will cost to promote the sale as well as the lost time it will take for you and your team to navigate the sale process.
Buyer Concessions
Sellers aren't the only ones who can make concessions in a business sale. In many instances, sellers can request buyer concessions. Although this scenario frequently plays out around seller financed deals, it's possible to push for a higher sales price or other form of compensation if you agree to mentor the buyer for a specified period of time. Asset exclusions, retained ownership shares and long-term contracts with another of the seller's companies can also be leveraged to extract concessions from buyers.
When Is the Right Time to Sell?
When is it the right time to sell your race car parts, equipment, and supplies retail business? If you're asking the question, now may be the time to put your business on the market. Some experts are telling race car parts, equipment, and supplies retail business sellers to put their plans on hold until the economy fully rebounds. We aren't nearly as pessimistic about the race car parts, equipment, and supplies retail business marketplace. The inventory of what we consider to be quality race car parts, equipment, and supplies retail businesses is actually low right now and there is room for the right sellers to realize substantial gains with investment-conscious buyers.
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