Exit Planning Advice By Market
Selling an Antique and Classic Auto Parts Business
Business sellers have diverse personal and professional goals for the sale of their companies. But no matter what you expect from the sale of your antique and classic auto parts business, it's in your best interest to maximize the sales price through the application of proven sales techniques.
Economic data is scary stuff for small business owners. But quarterly data dumps don't impact antique and classic auto parts business sales nearly as much as sale strategy.
Fortunately for sellers, forward-thinking entrepreneurs continue to be attracted to antique and classic auto parts businesses that exhibit strong financials and potential for future growth.
Preparing Your Antique & Classic Auto Parts Business for Sale
The outcome of a business sale is largely determined prior to a market listing. Profitable antique and classic auto parts business listings are the culmination of a preparation process that began months or even years ahead of time. Even though it may take years to adequately position your antique and classic auto parts business, the amount of preparation you perform will have direct correlation on asking and sale prices. But your efforts to improve your company's position and profitability will only be effective if you invest similar effort into the preparation of accurate financial statements for buyers.
The Case for Confidentiality
In the business-for-sale universe, publicity translates into risk. A low-key selling strategy is a low risk activity because you can control who does (and doesn't) know that your business is on the market. Eventually, word will leak out. When that happens, it can damage your standing with customers and vendors. Although it can be difficult, it's important to strike a balance between confidentiality and sale promotion. Brokers and consultants can mitigate the risk by implementing confidential sale techniques.
Legal Concerns
A basic understanding of legal requirements is foundational for a successful business sale. Despite the confusion that exists among many sellers, the essentials of the sale are described in the Letter of Intent, a seminal document that is created prior to due diligence . The price described in the Letter of Intent may fluctuate based on information that is revealed during due diligence, but the inclusion of new requirements in the final contract could be a deal killer. So after consulting with your broker and attorney, make sure you're comfortable with the terms of the Letter of Intent. If not, everything you do to close the sale of your antique and classic auto parts business may be a waste of time.
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