How to Sell a Niche Market Business
Selling an Elastic Goods Retailer
Many business leaders say that now isn't the time to try to sell an elastic goods retailer. But in reality, now may be the perfect time to sell an elastic goods retailer.
You survived all the ups and downs of owning a business. Next, you'll need to prepare yourself to address the rigors of selling an elastic goods retailer.
Many elastic goods retailer owners sell for a price that is well below market value. With the right strategy, your sale doesn't have to end that way.
Preparing Your Employees
As a business owner, you want to keep you employees informed about your plans; as a seller it's in your best interest to keep your employees in the dark for as long as possible. You're concerned about confidentiality, and rightfully so. If you keep your employees out of the loop too long, it's inevitable that misinformation will filter throughout your workplace. When that happens, it's best to have a frank conversation with your team rather than allowing rumors to circulate through the organization. Maintain a positive tone in your conversations and answer your employees questions as completely as you can without jeopardizing the sale.
Legal Concerns
In an elastic goods retailer sale, the Letter of Intent contains the vital elements of the deal between the buyer and the seller . The price described in the Letter of Intent may fluctuate based on information that is revealed during due diligence, but the inclusion of new requirements in the final contract could be a deal killer. For sellers, that makes a close review of the Letter of Intent more than a formality - it's a critical juncture on the path to closing.
Realistic Expectations
Objectivity is a rare commodity in a business sale. Sellers typically overvalue their companies compared to the rest of the marketplace. Although it may be a hard pill to swallow, you need to find a way to introduce objectivity into your sale. A business broker can be a valuable resource in right-sizing your expectations and preparing you for market realities.
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