How to Sell a Niche Market Business
Selling an Entertainers Business
Maybe you're counting on your entertainers business to be a stepping stone to your next big business venture. Maybe it's your retirement fund. Either way, you need to maximize the price it gets in the business-for-sale marketplace.
It's a fact: Successful business sales take time.
Most entertainers businesses are good business opportunities, a fact that is not going unnoticed by today's discerning buyers.
Understanding Market Timing
Now may be the best time to sell an entertainers business. A depressed economy means lower interest rates; lower interest rates increase the number of investors willing to take a chance on entertainers businesses. As the interest rates rise, it will be more difficult for buyers to make the numbers work in their favor. So we see market timing as a concern that can be easily mitigated by applying fundamental sales strategies and adequately preparing your company for buyers.
Advantages of Hiring a Broker
A good broker can offer several benefits to business sellers. Right out of the gate, brokers know how to help their clients properly prepare their businesses for a sale. More importantly, brokers have the ability to identify serious buyers and maintain confidentiality throughout the sale process. Typical brokerage rates (a.k.a. success fees) run 10% of the final price - an expense that is usually recouped through a higher sales price and less time on the market.
Sweetening the Deal
Today's entertainers business buyers expect sellers to offer concessions to persuade them to close the deal. Concessions can consist of non-cash as well as cash incentives. It's not unusual for sellers to offer non-cash incentives to help inexperienced entrepreneurs get off to a successful start. A limited amount of training and mentoring may seem inconsequential to you, but to a young entertainers business owner, they can be critical launching points for their ownership journey.
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