Optimizing Business Exits
Selling a Recorded Music Accompaniment Business
There are no guarantees when you sell a recorded music accompaniment business. But our tips will equip you with the information you need to increase the likelihood of a successful sales outcome.
Personal and professional concerns surround the sale of a recorded music accompaniment business. In addition to the personal enjoyment you received from the business, you probably have concerns about what will happen to the people who made your recorded music accompaniment business a success.
Nothing lasts forever and you will ultimately be faced with the task of selling your company. As a consequence, you have a substantial stake in knowing how to receive maximum price for your recorded music accompaniment business.
Pros & Cons of a Sale to an Employee
Employee sales have pros and cons. A key employee may seem like a natural sales prospect. If you need to sell quickly, the timeframe is condensed in an employee sale because you don't need to track down a buyer. Yet most employees lack the means to buy their employer's business at or near the asking price. Seller financing is one way to get around the capital deficit of an employee-based recorded music accompaniment business sale, as long as you are willing to vet the employee's credit worthiness the same as any other buyer.
Sale Preparation Timeframes
Preparing a recorded music accompaniment business sale takes time. For starters, the financials need to demonstrate a track record of profitability and growth. 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 recorded music accompaniment business can rarely be ready for the marketplace in less than six months. A more likely scenario is that it will take more than a year to create the conditions necessary to receive the maximum sale price.
Post-Sale Details
As your recorded music accompaniment businesssale nears completion, there is a lot of work remaining to be done. The transition to the new owner, the distribution of sale proceeds and other issues can weigh heavily on sellers. If there are pending details that still need to ironed out, address them ASAP to ensure a smooth closing and transition.
Share this article
Additional Resources for Entrepreneurs