Optimizing Business Exits
Selling a Rust Preventives and Removers Business
Don't believe anyone who tells you it's easy to sell a rust preventives and removers business. A lot of things need to happen before you can successfully exit your business. Good advice can be hard to come by, so we've put together a few proven suggestions to help you see your sale through to a profitable conclusion.
The business-for-sale market is just as frustrating for buyers as it is for sellers these days. Capital is scarce and many buyers simply can't afford the entry requirements for a rust preventives and removers business.
However, serious buyers also understand the value of a good rust preventives and removers business. To sell your rust preventives and removers business, you'll need to go the extra mile to prove your company has the potential to deliver steady revenue and a solid ROI.
Seller Financing
Capital is hard to come by these days. Banks and other lending institutions aren't eager to lend to unproven and undercapitalized rust preventives and removers business buyers regardless of the business's potential. Rather than abandon their plans entirely, many buyers are pursuing finance concessions from sellers. It's common for sellers to finance as much as 70% of the purchase price with a payoff period of four or five years, sometimes in the form of a balloon payment at the end of the repayment period.
Are You the Right Person to Sell Your Business?
An unassisted business sale is a double-edged sword. On the one hand, no one knows your business better than you do. When it comes to earnings potential, asset condition, and other considerations, you are the world's leading expert on your company. However, your close connection to your company can also be a drawback. Business owners are subjective and biased about their company's true worth. So in many cases, the introduction of third-party opinions regarding value and negotiation parameters is a fundamental requirement for a successful rust preventives and removers business sale.
Moving On
The decision to sell your rust preventives and removers business can't be made without adequate consideration of what will happen after the sale. 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 rust preventives and removers business attractive to buyers.
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