Niche Exit Planning Tactics
Selling a Wagons and Carts Business
With the economy limping along, many wagons and carts business owners are hesitant to put their businesses on the market. But in reality, now may be the perfect time to sell a wagons and carts business.
It's a fact: Successful business sales take time.
There are still plenty of wagons and carts business buyers looking for opportunities that present well in the marketplace.
Equipment and Inventory Concerns
Buyers typically perform an independent appraisal of your wagons and carts business's physical assets. Most sellers, however, conduct a pre-sale appraisal to gain an accurate gauge of asset value prior to negotiations. A professional appraisal is a necessity because it gives you the information you need to negotiate a sale price. During your appraisal process, you should also note the condition of your assets. Cost-effective repairs can then be made before your list your wagons and carts business.
Broker vs. No Broker
When selling a wagons and carts business, you have two choices: Hire a broker to facilitate the sale or perform the sale unassisted. Is there a cost associated with hiring a broker? Sure - about 10% of the final sale prices. But a good broker will make selling your wagons and carts business much less painful. You can also expect to receive a higher sales price for your business in a broker-assisted deal.
Sale Preparation Timeframes
Preparing a wagons and carts 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. You'll also need to create financial reports, operations manuals, and other documents to create the perception of a turnkey wagons and carts business operation. Since all of this takes time and effort, a wagons and carts business can rarely be ready for the marketplace in less than six months. A more likely scenario is that it will take more than a year to create the conditions necessary to receive the maximum sale price.
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