Optimizing Business Exits
Selling a Rack Dealership
With the economy struggling to rebound, the shadow inventory of rack dealerships in the business-for-sale marketplace seems to be rising. That could make this the perfect time to list a successful rack dealership
When the economy recovers, we expect to see a sudden influx of rack dealerships in the business-for-sale marketplace. Although these companies have been for sale, their owners have resisted listing them until a better economy materializes.
But sooner or later, all good things must come to an end. When that happens, your future plans will be dependent on your ability to receive the highest possible sale price for your rack dealership.
Closing Strategies
Like it or not, prospective buyers are going to ask you to make certain concessions in the sale of your rack dealership. But don't limit your view of concessions to financial incentives. In fact, many concessions have little or no financial impact, but go a long way toward making the deal more palatable to young entrepreneurs. In the current economy, seller financing is becoming common in rack dealership sales. If the prospect is inexperienced or lacks credentials in the industry, you can also offer to stay with the business for a specified period of time to help the new owner get on his feet and introduce him to your network of industry contacts.
Emotional Considerations
Prepare yourself to feel a broad range of emotions when you sell a rack dealership. From hopefulness to remorse, it's all part of exiting of your company. Given your personal investment, you may also experience disappointment in the market's assessment of your company's value. Although it isn't easy, you can mitigate the emotional impact of a rack dealership sale by setting realistic expectations before you list your business.
Brokerage Benefits
A good broker can offer several benefits to business sellers. Right out of the gate, brokers know how to help their clients properly prepare their businesses for a sale. Even more, the best brokers have a track of record of discreetly identifying likely buyers and contacting them on your behalf. 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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