Exit Planning Advice By Market
Selling an Auction Business
You've heard the naysayers - now isn't the time to sell a auction business. But what they don't know is that many entrepreneurs see auction businesses as a smart business investment.
Business-for-sale markets are less dependent on economic conditions than most sellers think they are.
At Gaebler, we think that's a mistake because with adequate preparation and the right sale strategy, this might be the best time to put your auction business on the market.
Leveraging Seller Concessions
Seller concessions are becoming more commonplace in business-for-sale transactions. The most common seller concession is seller financing. Traditional lenders and investors are gun shy - and that makes sellers a logical funding source for many buyers. Other common seller concessions include staying on the mentor the new owner, non-compete clauses, and working as a consultant to mitigate the impact of new ownership.
Average Timeframes
It's rarely possible to sell an auction 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. Before you can list your auction business, you'll need to invest as much as a year in preparing it for prospective buyers. Even though it's conceivable that an attractive opportunity could sell in weeks, an immediate flood of offers could indicate that the business is underpriced.
Signs You're in Over Your Head
Many auction business are tempted to save brokerage fees by selling their businesses on their own. Without brokerage, the risk of your sale going off-course is increased. 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. Likewise, if buyers seem to express interest but quickly exit when you quote the asking price, it's a sign that your auction business is priced out of the market. The remedy is professional brokerage or a consultation with more experienced sellers.
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