Optimizing Business Exits
Selling a Racquetball Club
You've learned a lot during your tenure as a racquetball club owner. The next step is to position your business for the demands of the business-for-sale marketplace.
Waiting for better economic times to sell your company? That's a common anthem in the small business community.
In order to market a racquetball club now, sellers need to make a strong case for buyers to purchase at or near the asking price.
When the Sale Goes Off-Course
Many racquetball club are tempted to save brokerage fees by selling their businesses on their own. Although there are exceptions, solo sales typically take longer and are less productive than brokered sales. Generally, listed businesses should generate interest within a few months. Lack of buyer enthusiasm or persistence indicates that something is wrong. The remedy is professional brokerage or a consultation with more experienced sellers.
Identifying Serious Buyers
Many prospective buyers will have a strong desire to acquire your racquetball club. The bad news is that they will lack the financial capacity to close the deal. As a seller, it's important to separate the tire kickers from the serious buyers as soon as possible. Each tire kicker is an investment of time and energy that could be poured into finding a more qualified prospect. Your business broker can offer insights about how to quickly spot tire kickers. Never provide detailed information about your racquetball club until the prospect has been qualified as a serious buyer.
Moving On
What will happen if your racquetball club is a success? many sellers find themselves ill-equipped to handle life after their business and fail to understand that their future plans can influence the sale process. For example, seller financing can be an extremely valuable concession, especially in the current economy. But if you need all of the proceeds of the sale upfront, seller financing is off the table and you'll need to find a different way to make your racquetball club attractive to buyers.
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