Exit Planning Advice By Market
Selling an Art Shop
With the economy limping along, many art shop owners are hesitant to put their businesses on the market. Don't be deterred by economic uncertainty. There are plenty of reasons why this is the right time to put your art shop on the market.
You won't find any magic formulas for selling an art shop, especially while the market is struggling to overcome the perceptions created by a down economy.
If your exit strategy involves selling an art shop now, sellers need to make a strong case for buyers to purchase at or near the asking price.
Average Preparation Time
There are no effective shortcuts for selling an art shop. 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. Unless you have already started planning for your art shop sale, it's going to take at least six months to prepare your business. A more likely scenario is that it will take more than a year to create the conditions necessary to receive the maximum sale price.
The Case for Confidentiality
Highly publicized art shop sales are risky art shopsales. If you are rigorous about maintaining a confidential sale, there is little risk in putting your art shop 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.
Signs You're in Over Your Head
It's not uncommon for the owners of small art shops to adopt a go-it-alone sale strategy. Plenty of owners sell their art shops unassisted. Although there are exceptions, solo sales typically take longer and are less productive than brokered sales. As a rule, no business should sit on the market for more than six months without attracting the interest of at least a handful of qualified buyers. Lack of buyer enthusiasm or persistence indicates that something is wrong. The remedy is professional brokerage or a consultation with more experienced sellers.
Share this article
Additional Resources for Entrepreneurs