How to Sell a Niche Market Business
Selling an Ear Molds Business
With the economy limping along, many ear molds business owners are hesitant to put their businesses on the market. At Gaebler, we think it's a great time to sell an ear molds business. Here's why . . ..
Economic data is scary stuff for small business owners. But quarterly data dumps don't impact ear molds business sales nearly as much as sale strategy.
However, serious buyers also understand the value of a good ear molds business. So for ear molds business sellers, today's market is all about convincing buyers that the numbers make their companies worth the asking price.
Finding Prospects
Still looking for prospective buyers for your business? You probably already know several parties with an interest in acquiring your company. We frequently see qualified buyers emerge from the seller's network of business and personal acquaintances. In other cases, sellers take a proactive approach to finding likely buyers and contacting them directly. If you aren't generating interest in the general marketplace, consider approaching companies that sell complementary products or are closely situated in your supply chain.
Working with a Professional Accountant
Accountants lay the financial groundwork for a business sale. Before your ear molds business goes on the market, you should sit down with your accountant to clarify your financial goals and the tax consequences of a sale. You may also want your accountant to assist in the preparation of professional financials to present to serious buyers. With seller financing becoming common, professional accountants are playing a more central role in negotiations and buyer qualification.
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. As a rule, they limit the amount of information that is provided in the initial stages of an engagement, waiting to reveal the juiciest details of the business until the prospect has been thoroughly vetted. Smart sellers may require prospects to provide background and financial information fairly early in the process as a way of verifying the financial capacity to close the deal.
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