Optimizing Business Exits
Selling a Ravioli Business
At first glance, an unstable economy would seem to be an unfriendly atmosphere for a ravioli business sale. But in reality, now may be the perfect time to sell a ravioli business.
If you plan on selling your ravioli business quickly, prepare to be disappointed.
There is no simple way to sell a business. But the most prepared ravioli business sellers are achieving fair market value and more for their companies through persistence and the application of sound selling techniques.
Professional Appraisals
An experienced appraiser is part and parcel of a successful ravioli business sale. Leading industry appraisers equip sellers with a value gauge that can be accessed during negotiations. Even though you may disagree with the appraiser's value estimates, it's important to give your appraiser the information and independence he needs to present an objective opinion. To ensure accuracy, ask your broker to provide references for appraisers with industry experience.
Why Confidentiality Matters
Confidentiality determines risk in the business-for-sale marketplace. If you are rigorous about maintaining a confidential sale, there is little risk in putting your ravioli business on the market. Eventually, word will leak out. When that happens, it can damage your standing with customers and vendors. Although it can be difficult, it's important to strike a balance between confidentiality and sale promotion. Brokers and consultants can mitigate the risk by implementing confidential sale techniques.
Sale Preparation Timeframes
There are no effective shortcuts for selling a ravioli 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. Additionally, prospective buyers usually request documentation that allows them to understand the business's daily workflows and operational strategy. At a minimum, plan on spending six months preparing your ravioli business for the marketplace. A more likely scenario is that it will take more than a year to create the conditions necessary to receive the maximum sale price.
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