How to Sell a Niche Market Business
Selling an Electronics Store
With the economy limping along, many electronics store owners are hesitant to put their businesses on the market. At Gaebler, we think it's a great time to sell an electronics store. Here's why . . ..
Dire economic forecasts have forced many electronics store sellers into hibernation. Instead of listing their companies now, they're hanging back until they see signs of an economic recovery.
Qualified buyers are constantly looking for attractive electronics stores. Like always, unprofitable and poorly positioned businesses struggle to find buyers while sellers who have invested time and effort to prepare their sale are being rewarded in the marketplace.
Working with a Professional Accountant
Accountants lay the financial groundwork for a business sale. From a seller perspective, an accountant can offer personal financial assistance, especially when it comes to handling the disposition of sale proceeds. Brokers often advise their clients to have an accountant perform an audit of the business prior to sale. In certain instances, it may be appropriate to ask your accountant to vet the financials of prospective buyers, run credit checks or even structure the terms of a seller-financed deal.
Understanding Market Timing
Now may be the best time to sell an electronics store. A depressed economy means lower interest rates; lower interest rates increase the number of investors willing to take a chance on electronics stores. When the economy recovers there will be more electronics store buyers on the market, but higher interest rates could present challenges. Market conditions can be intimidating. But your larger concern should be whether or not your business is ready to be presented to qualified sale prospects.
Seller Financing
The shortage in today's marketplace isn't interested buyers -- it's capital. Banks and other lending institutions aren't eager to lend to unproven and undercapitalized electronics store buyers regardless of the business's potential. Rather than abandon their plans entirely, many buyers are pursuing finance concessions from sellers. 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.
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