Niche Exit Planning Tactics
Selling a Water Sports Equipment Rental Business
Market shifts affect business values and the water sports equipment rental business industry has seen more than its share of fluctuations in business values. Many sellers have exited their companies under less-than-ideal circumstances. Yet it's still possible to achieve personal and professional goals when selling a water sports equipment rental business in the current economic environment.
An assortment of hurdles and obstacles stand between you and the successful sale of your water sports equipment rental business.
Fortunately for sellers, forward-thinking entrepreneurs continue to be attracted to water sports equipment rental businesses that exhibit strong financials and potential for future growth.
Seller Financing
Capital is hard to come by these days. Financial institutions have tightened up their lending policies, making it difficult for inexperienced and undercapitalized entrepreneurs to buy water sports equipment rental businesses. As a result, buyers expect sellers to finance a significant portion of the sale. Although 100% seller financing isn't recommended, sellers are financing up to 70% of the sale price to close deals.
Legal Concerns
We run into a lot of water sports equipment rental 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. For sellers, that makes a close review of the Letter of Intent more than a formality - it's a critical juncture on the path to closing.
Advertising Your Sale
The best water sports equipment rental business sales incorporate comprehensive advertising plans. But if you think advertising your water sports equipment rental business will be the same as running a product promotion, think again. Multiple factors complicate business-for-sale advertising, not the least of which is the fact that you don't want your competition to know that your company is on the market. If sale information leaks out, competitors can use it to steal customers and circulate negative messages about your business throughout the industry. Business brokers are skilled at publicizing water sports equipment rental business sales while maintaining the confidentiality that is critical to your business.
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