Exit Planning Strategies
Selling a Videography Business
With the economy limping along, many videography business owners are hesitant to put their businesses on the market. But in reality, now may be the perfect time to sell a videography business.
Business buyers are a timid lot, even more so now that they are facing an uncertain economic landscape.
Undaunted by economic conditions, many videography business sellers are achieving their sale goals through deliberate sale strategies.
Sale Preparation Timeframes
Preparing a videography business sale takes time. Since buyers prefer to see evidence of future cash flow, you'll want to to strategically lock in cash flows and increase profits before you list the business. Next, the business will need to be documented in professional financial statements and manuals that facilitate the ownership transition. Since all of this takes time and effort, a videography business can rarely be ready for the marketplace in less than six months. However, to command the highest price, you'll probably need to spend one to two years preparing and positioning your business for buyers.
Why Confidentiality Matters
Highly publicized videography business sales are risky videography businesssales. A low-key selling strategy is a low risk activity because you can control who does (and doesn't) know that your business is on the market. Eventually, word will leak out. When that happens, it can damage your standing with customers and vendors. Although it can be difficult, it's important to strike a balance between confidentiality and sale promotion. Brokers and consultants can mitigate the risk by implementing confidential sale techniques.
Handling Unexpected Outcomes
If you're smart, you entered your videography business with a set of assumptions about what it would achieve. However, no one told the marketplace about your expectations. The outcome of your sale will be determined by market forces - not by your personal circumstances or desires. Despite your best efforts, you need to prepare yourself for the possibility of receiving less than you expected from the sale of your videography business. If buyers don't seem to be willing to meet your expectations, consult with your broker to modify your strategy and market approach.
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