Exit Planning Advice By Market
Selling an Appliances Business
Few entrepreneurs relish the idea of selling a business in a struggling economy. Yet appliances businesses continue to be sold at a brisk pace, outperforming the sales of many other types of businesses.
In a down economy, many appliances 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 appliances businesses that are actually for sale.
Despite the conventional wisdom, we believe current economic conditions are right for selling an appliances business. We'll tell you what you need to know to achieve a successful sale outcome
Identifying Serious Buyers
Unfortunately, many of the prospects you will encounter aren't serious buyers. As a seller, it's important to separate the tire kickers from the serious buyers as soon as possible. Each tire kicker is an investment of time and energy that could be poured into finding a more qualified prospect. Your business broker can offer insights about how to quickly spot tire kickers. It's likely that non-serious buyers will want to know everything about your appliances business during their initial inquires. Avoid releasing details about your appliances business until you have established that they have the financial capacity to make a legitimate offer.
Signs You're in Over Your Head
Many appliances business are tempted to save brokerage fees by selling their businesses on their own. Although there are exceptions, solo sales typically take longer and are less productive than brokered sales. Generally, listed businesses should generate interest within a few months. When buyers fail to exhibit substantive interest, it could indicate unrealistic pricing or an inferior selling strategy. The remedy is professional brokerage or a consultation with more experienced sellers.
Average Timeframes
It's rarely possible to sell an appliances business in a month or two. Although asking price and other factors contribute to sale time, it's difficult to predict how long your business will be on the market before you locate the right buyer. On average, it takes a minimum of six months to prepare an appliances business for sale and many sellers spend a year or more positioning their business to command a higher price. In a good market, an attractive appliances business can sell in as little as a few months, although it can take more than a year to find the right buyer after the business is listed.
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