Sell a Business Tips
Selling a Shortening Business
We hear from a lot of business owners who are timid about listing their shortening business. Despite the mood of the market, we think there are still opportunities to receive a good price for your shortening business. Here's what you need to know . . .
Dire economic forecasts have forced many shortening business sellers into hibernation. Instead of listing their companies now, they're hanging back until they see signs of an economic recovery.
Fortunately for sellers, forward-thinking entrepreneurs continue to be attracted to shortening businesses that exhibit strong financials and potential for future growth.
How Much Does It Cost to Sell a shortening business?
In a shortening business sale, pricing is based on a number of factors, including the costs incurred during the sale. Hiring a broker is a mixed bag because although brokers can increase the sale price, they also take a 10% fee. Depending on your circumstances, you may also incur substantial expenses in hiring legal, appraisal and accounting professionals. If you need to compensate employees to assist with the sale, their services should also be considered.
Leveraging Seller Concessions
In the current marketplace, seller concessions can make the difference between a business sale and a shortening business that languishes on the market for months or even years. The most common seller concession is seller financing. With entrepreneurs struggling to secure capital, you may be the buyer's only source of financing. As an alternative, clearly state that seller financing is not an option and consider offering other concessions to see the sale through to its completion.
Average Timeframes
Hoping for a quick shortening business sale? You may be disappointed. Although asking price and other factors contribute to sale time, it's difficult to predict how long your business will be on the market before you locate the right buyer. Before you can list your shortening business, you'll need to invest as much as a year in preparing it for prospective buyers. Even though it's conceivable that an attractive opportunity could sell in weeks, an immediate flood of offers could indicate that the business is underpriced.
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