Exit Planning Advice By Market
Selling an Agricultural Producers and Products Business
Think agricultural producers and products business sales have dwindled to a standstill? Think again. There aren't any guarantees, but if you adhere to fundamental business sale concepts, you can likely get a good price for your business.
You survived all the ups and downs of owning a business. Next, you'll need to prepare yourself to address the rigors of selling an agricultural producers and products business.
However, serious buyers also understand the value of a good agricultural producers and products business. So for agricultural producers and products business sellers, today's market is all about convincing buyers that the numbers make their companies worth the asking price.
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 agricultural producers and products 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.
Timing the Market
Now may be the best time to sell an agricultural producers and products business. With interest rates at all-time lows, it's easy to see why agricultural producers and products businesses are an appealing investment opportunity for savvy investors. As the interest rates rise, it will be more difficult for buyers to make the numbers work in their favor. So we see market timing as a concern that can be easily mitigated by applying fundamental sales strategies and adequately preparing your company for buyers.
Should I Hire a Business Broker?
Anyone who has ever sold an agricultural producers and products business has eventually needed to decide whether to use a business broker or go it alone. 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 agricultural producers and products business much less painful. You can also expect to receive a higher sales price for your business in a broker-assisted deal.
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