Advice on Niche Market Exit Planning
Selling a Thread Business
Many business leaders say that now isn't the time to try to sell a thread business. At Gaebler, we think it's a great time to sell a thread business. Here's why . . ..
Business sellers sometimes face a long, hard struggle to get fair market value for their companies. But with the adequate preparation, your thread business can attract buyers who recognize its potential.
Eventually, it will the time will come to exit your business. When that happens, your future plans will be dependent on your ability to receive the highest possible sale price for your thread business.
Seller Financing
Capital is hard to come by these days. Banks and other lending institutions aren't eager to lend to unproven and undercapitalized thread business buyers regardless of the business's potential. Rather than abandon their plans entirely, many buyers are pursuing finance concessions from sellers. Although 100% seller financing isn't recommended, sellers are financing up to 70% of the sale price to close deals.
Timing the Market
Timing is everything when it comes to selling a thread business. With interest rates at all-time lows, it's easy to see why thread businesses are an appealing investment opportunity for savvy investors. As the interest rates rise, it will be more difficult for buyers to make the numbers work in their favor. So we see market timing as a concern that can be easily mitigated by applying fundamental sales strategies and adequately preparing your company for buyers.
Broker vs. No Broker
The decision of whether or not to hire a business broker should never be taken lightly. Although brokerage fees can be substantial, the right broker can reduce the amount of time your thread business sits on the market. You can also expect to receive a higher sales price for your business in a broker-assisted deal.
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