Sell a Business Tips
Selling a Straw Goods Business
At first glance, an unstable economy would seem to be an unfriendly atmosphere for a straw goods business sale. At Gaebler, we think it's a great time to sell a straw goods business. Here's why . . ..
In any economy, there is a right way and a wrong way to sell a business.
Undaunted by economic conditions, many straw goods business sellers are achieving their sale goals through deliberate sale strategies.
Average Timeframes
It's rarely possible to sell a straw goods business in a month or two. The amount of time your business will be on the market depends on how aggressively it is priced and marketed. Before you can list your straw goods business, you'll need to invest as much as a year in preparing it for prospective buyers. Once your business is ready for the marketplace, it could take an additional six months to a year to locate the right buyer.
Negotiation 101
It's critical to negotiate from a position of strength. More often than not, the person with the most knowledge will come out on top in a straw goods business negotiation. But great negotiation begins with knowing yourself. What is the realistic price range for your straw goods business? What is the minimum amount you're willing to settle on? Are you willing to offer seller financing or other concessions to close the deal? If you can't answer these questions, you're simply not ready to sit down at the negotiation table yet. If you aren't sure what you need, put negotiations on hold until you gain a clearer understanding of your own deal parameters.
Sale Documents
In a straw goods business sale, the Letter of Intent contains the vital elements of the deal between the buyer and the seller . If you are seeking buyer concessions, the time to address them is before the Letter of Intent is drafted. For sellers, that makes a close review of the Letter of Intent more than a formality - it's a critical juncture on the path to closing.
Share this article
Additional Resources for Entrepreneurs