Advice on Niche Market Exit Planning
Selling a Transit and Transportation Advertising Business
Many business leaders say that now isn't the time to try to sell a transit and transportation advertising business. Don't be deterred by economic uncertainty. There are plenty of reasons why this is the right time to put your transit and transportation advertising business on the market.
The decision to sell a transit and transportation advertising business is never easy. In our experience, a common owner concern is how the sale will affect customers and employees.
Too often transit and transportation advertising business sellers fail to receive fair market value for their businesses. With the right strategy, your sale doesn't have to end that way.
Legal Considerations
It pays to invest in first-rate legal counsel when you sell a transit and transportation advertising business. Tackling the legal nuances and tax ramifications of a sale without a first-rate business lawyer is an invitation for disaster. In some cases, an attorney may also provide assistance in securing long-term leases or vendor contracts to make your transit and transportation advertising business more attractive to buyers. If you don't know an attorney with experience in the business-for-sale market, ask your broker for a referral.
Selling a Transit & Transportation Advertising Business to an Employee
Employee sales have pros and cons. A key employee may seem like a natural sales prospect. If you need to sell quickly, the timeframe is condensed in an employee sale because you don't need to track down a buyer. However, some employees feel they are entitled to special treatment and pricing, especially if they have played a key role in the company's success. Seller financing is one way to get around the capital deficit of an employee-based transit and transportation advertising business sale, as long as you are willing to vet the employee's credit worthiness the same as any other buyer.
Pre-Sale Checklist
There is a lot of work that needs to be done before you're ready to sell your transit and transportation advertising business. Perhaps the most important pre-sale consideration is to right-size your expectations to the realities of the market. After you have consulted with a business broker to right size your expectations, you'll need to add several items to your checklist, including financial statement preparation, pre-sale appraisals, financial planning, market positioning and other tasks designed to communicate value to prospective buyers.
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