Exit Planning Advice By Market
Selling an Auto Wrecking Equipment and Supplies Business
Business-for-sale markets are susceptible to a variety of influences. As you know, the auto wrecking equipment and supplies business industry has seen more than its share of fluctuations in business values. Here's what you'll need to know to sell an auto wrecking equipment and supplies business during challenging economic times.
Most entrepreneurs have the skills and stamina to endure and prosper during the sale ofan auto wrecking equipment and supplies business.
There are many factors involved with the decision to sell a business. Knowledgeable entrepreneurs understand that market timing isn't nearly as important as other factors in a auto wrecking equipment and supplies business sale. To improve sale outcomes, you will simply need to tailor your auto wrecking equipment and supplies business to today's buyers.
How to Work with Business Brokers
Brokerage is a mainstay of the business-for-sale marketplace. It's typical for auto wrecking equipment and supplies business to rely on brokers to reduce market time and increase the final sales price. However, your broker will still expect you to materially participate in the sale of your business. Successfully brokered sales are based on solid relationships between brokers and sellers as well as the strict execution of a common selling strategy.
Preparing Family Members
Many sellers embarked on their auto wrecking equipment and supplies business sale without adequately considering the impact it will have on their families. Whether you realize it or not, your auto wrecking equipment and supplies business has been an important part of your family life. As a seller, you need to be sensitive to your family's feelings about the sale and make an effort to keep them informed about the process. Subsequently, selling an auto wrecking equipment and supplies business has to include ample communication and shared decision-making.
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 auto wrecking equipment and supplies businesses. As a result, buyers expect sellers to finance a significant portion of the sale. It's common for sellers to finance as much as 70% of the purchase price with a payoff period of four or five years, sometimes in the form of a balloon payment at the end of the repayment period.
Share this article
Additional Resources for Entrepreneurs