How to Sell a Niche Market Business
Selling an Excelsior Business
A good business is about more than dollars and sense. To make your excelsior business what it is today, you've had to fully invest yourself in its success. To see your ownership role through to completion, you will need to exhibit similar diligence in selling your company.
Business buyers face their own set of frustrations and complications. Although there are plenty of entrepreneurs who want to buy an excelsior business, capital restrictions are holding them back.
The good news is that ambitious entrepreneurs continue to see excelsior businesses as a smart business investment -- and the market is rewarding owners who are willing to invest time and energy in their sale.
Working with Appraisers
An experienced appraiser is part and parcel of a successful excelsior business sale. Leading industry appraisers equip sellers with a value gauge that can be accessed during negotiations. If you're disappointed with the appraiser's estimate of your company's worth, you have the option of seeking a second opinion. However, it's more often the case that you will need to adjust your expectations of your business's value to buyers.
Seller Financing
The shortage in today's marketplace isn't interested buyers -- it's capital. Financial institutions have tightened up their lending policies, making it difficult for inexperienced and undercapitalized entrepreneurs to buy excelsior businesses. As a result, buyers expect sellers to finance a significant portion of the sale. As you prepare for the sale of your excelsior business, expect to be asked to finance a substantial part of the sale price.
Laying the Groundwork
A successful excelsior business sale begins with careful planning. Although you are convinced your business has value in the marketplace, the planning process establishes a framework for communicating its value to prospective buyers. In our experience, it pays to solicit the advice of a professional business broker as soon as possible. A good broker will guide you through the preparation stage and make sure you've covered all the bases. Specifically, brokers can advise you about the preparation of financial statements and other documents buyers expect to see in a premium excelsior business opportunity.
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