Niche Exit Planning Tactics
Selling a Wholesale Art Business
Don't believe anyone who tells you it's easy to sell a wholesale art business. A lot of things need to happen before you can successfully exit your business. We'll tell you how to thrive in the middle of it and get top dollar for your company.
Selling a wholesale art business? You'll need to be prepared to address a variety of challenges that are common in the business-for-sale marketplace.
Many business owners don't know that wholesale art businesses are still a hot commodity, to the extent that sellers have properly prepared them for the marketplace.
Sale Preparation Timeframes
There are no effective shortcuts for selling a wholesale art business. 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. Unless you have already started planning for your wholesale art business sale, it's going to take at least six months to prepare your business. A more likely scenario is that it will take more than a year to create the conditions necessary to receive the maximum sale price.
Equipment and Inventory Concerns
It's incumbent on buyers to commission their own appraisal of your wholesale art business's real 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 wholesale art business.
Signs You're in Over Your Head
It's not uncommon for the owners of small wholesale art businesses to adopt a go-it-alone sale strategy. Plenty of owners sell their wholesale art businesses unassisted. Although there are exceptions, solo sales typically take longer and are less productive than brokered sales. As a rule, no business should sit on the market for more than six months without attracting the interest of at least a handful of qualified buyers. When buyers fail to exhibit substantive interest, it could indicate unrealistic pricing or an inferior selling strategy. If that occurs, it's time to bring in the professionals to get your sale back on track.
Share this article
Additional Resources for Entrepreneurs