Niche Exit Planning Tactics
Selling a Work Clothing Wholesale and Manufacturers Business
You've learned a lot during your tenure as a work clothing wholesale and manufacturers business owner. Now the trick is to convince cautious buyers that your operation is worth the asking price.
We hear it all the time: "I'm waiting until the economy recovers to list my business."
At Gaebler, we think waiting for the economy to rebound is a mistake for many business owners. Selling a work clothing wholesale and manufacturers business isn't easy, but we believe sellers can achieve their goals in any economic environment.
Selling a Work Clothing Wholesale & Manufacturers Business to an Employee
Employee sales have pros and cons. A faithful employee may have the motivation and ability to continue to operate the business. Since the worker already knows the ins and outs of the business, due diligence should be a breeze, not to mention the fact that you won't have to wait months or years for the right buyer to emerge on the open marketplace. Yet most employees lack the means to buy their employer's business at or near the asking price. Seller financing is one way to get around the capital deficit of an employee-based work clothing wholesale and manufacturers business sale, as long as you are willing to vet the employee's credit worthiness the same as any other buyer.
Sale Costs
In a work clothing wholesale and manufacturers business sale, pricing is based on a number of factors, including the costs incurred during the sale. Although they can significantly increase the final sale price, brokers typically receive a 10% commission. Professional consultations can also represent a significant expense during the course of a work clothing wholesale and manufacturers business sale. Furthermore, your time has value, so you may need to include a personal compensation consideration in your expense estimates.
Sale Preparation Timeframes
There are no effective shortcuts for selling a work clothing wholesale and manufacturers 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. Since all of this takes time and effort, a work clothing wholesale and manufacturers business can rarely be ready for the marketplace in less than six months. If you can afford to wait, we recommend investing a few years in improving your business's financial position before you put it on the market.
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