Selling a Company Advice
Selling a Used Appliances Business
A lot can go wrong during the sale of a used appliances business even if the seller has previous business sales experience. With little room for error, your business sale has to feature the flawless execution of concepts that are driving today's business-for-sale marketplace.
Economic data is scary stuff for small business owners. But quarterly data dumps don't impact used appliances business sales nearly as much as sale strategy.
But sooner or later, all good things must come to an end. And when that day arrives, you need to know how to sell your used appliances business in a way that achieves positive outcomes for you and the business.
Sale Documents
We run into a lot of used appliances business sellers who intend to wait until the final contract to negotiate details. Big mistake. With few exceptions, sale structure is hammered out early, in the Letter of Intent . If you are seeking buyer concessions, the time to address them is before the Letter of Intent is drafted. Never sign a Letter of Intent until it has been properly reviewed by your attorney and you are in complete agreement with everything it contains.
Timing the Market
Now may be the best time to sell a used appliances business. Although the economy is generally struggling, low interest rates make used appliances businesses more attractive to entrepreneurs who want to get in the game. 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.
Seller Concessions
In the current marketplace, seller concessions can make the difference between a business sale and a used appliances business that languishes on the market for months or even years. By far, seller financing is the most sought-after concession, especially in the current economic environment. With entrepreneurs struggling to secure capital, you may be the buyer's only source of financing. If you are unwilling or unable to offer financing, be prepared to offer other types of concessions to close the deal.
Share this article
Additional Resources for Entrepreneurs