Niche Exit Planning Tactics
Selling a Woodworking Machinery, Equipment, and Supplies Business
Planning and execution can dramatically influence the price you receive for your woodworking machinery, equipment, and supplies business.
In a down economy, many woodworking machinery, equipment, and supplies business sellers wait to list their businesses until they see signs that the economy has rebounded, making it difficult to accurately evaluate the number of woodworking machinery, equipment, and supplies businesses that are actually for sale.
Too often woodworking machinery, equipment, and supplies business owners fail to receive fair market value for their businesses. Smart sellers know the value of their companies are prepared to identify buyers who are willing to pay top dollar.
Current Market Conditions
No one plans to sell a woodworking machinery, equipment, and supplies business in a down economy. So far, government intervention and promises that the economy is slowly recovering haven't been enough to alleviate many entrepreneur's fears. However, many business sellers don't realize that a full economic rebound can have devastating consequences, particularly if sellers who have waited to list their businesses suddenly create a glut in the business-for-sale marketplace. So what's our point? The economy isn't the most important factor in the sale of your business. Instead, you should be focusing on making your woodworking machinery, equipment, and supplies business as attractive as possible so to buyers right now.
Are You the Right Person to Sell Your Business?
As the owner, you are both the best and worst person to sell your woodworking machinery, equipment, and supplies business. Without a doubt, you have the most at stake in the outcome of your sale. That makes you the most passionate advocate for your woodworking machinery, equipment, and supplies business in the business-for-sale marketplace. However, your close connection to your company can also be a drawback. You see your company's potential. But buyers don't pay for potential - they pay for current market value. At a minimum, conduct an independent appraisal of the woodworking machinery, equipment, and supplies business to gain an objective sense of fair market value.
Turning the Tables: Buyer Concessions
Sellers aren't the only ones who can make concessions in a business sale. In many instances, sellers can request buyer concessions. Often, buyer concessions represent financial incentives that the seller receives in exchange for providing a non-cash benefit (e.g. training, financing, etc.. Asset exclusions, retained ownership shares and long-term contracts with another of the seller's companies can also be leveraged to extract concessions from buyers.
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