Sell a Business Tips
Selling a Sewing Business
Is the economy still a little shaky for a business sale? Sure it is. Yet sewing businesses haven't heard the news and are reporting steady action on the business-for-sale market.
These days, the prospect of selling a sewing business is so daunting that many would-be sellers are biding their time, waiting for a break in the economic clouds.
At Gaebler, we think that's a mistake because with adequate preparation and the right sale strategy, this might be the best time to put your sewing business on the market.
Sale Preparation Timeframes
Preparing a sewing business sale takes time. Buyers want to see growth trends, healthy profits and other variables that increase the likelihood of long-term success. You'll also need to create financial reports, operations manuals, and other documents to create the perception of a turnkey sewing business operation. At a minimum, plan on spending six months preparing your sewing business for the marketplace. If you can afford to wait, we recommend investing a few years in improving your business's financial position before you put it on the market.
How to Skillfully Address Buyer Concerns
It's a common scenario: in an effort to perform a thorough due diligence process, buyers flood sewing business sellers with questions and requests, often to the point of becoming a nuisance. The questions sewing business ask during due diligence are designed to alleviate their concerns about the business and should be promptly addressed by the seller. To protect yourself, don't offer an answer until you are sure the information you are providing is 100% accurate. If due diligence drags on too long, your broker may need to intervene.
The Best Person to Sell Your Sewing Business
An unassisted business sale is a double-edged sword. Few people know your business as well as you do. However, your close connection to your company can also be a drawback. Nearly all sellers have an inflated sense of their company's value. At a minimum, conduct an independent appraisal of the sewing business to gain an objective sense of fair market value.
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