Business Exits By Industry
Selling a Catering Business
Business-for-sale markets are susceptible to a variety of influences. As you know, the catering business market has been exceptionally volatile. Many sellers have exited their companies under less-than-ideal circumstances. Yet it's still possible to achieve personal and professional goals when selling a catering business in the current economic environment.
When it comes to selling a catering business, there are no shortcuts to success.
Success is a factor of preparation, execution and a keen eye for the market. As a business seller, you need to go into the process with the mental goal of presenting your business in the best possible light.
Selling a Catering Business to an Employee
Although it may seem easier to sell your catering business to an employee, this approach also has some pitfalls. A faithful employee may have the motivation and ability to continue to operate the business. Since the worker already knows the ins and outs of the business, due diligence should be a breeze, not to mention the fact that you won't have to wait months or years for the right buyer to emerge on the open marketplace. Yet most employees lack the means to buy their employer's business at or near the asking price. Seller financing is one way to get around the capital deficit of an employee-based catering business sale, as long as you are willing to vet the employee's credit worthiness the same as any other buyer.
Working with Appraisers
An experienced appraiser is part and parcel of a successful catering 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.
Average Timeframes
It's rarely possible to sell a catering business in a month or two. Although asking price and other factors contribute to sale time, it's difficult to predict how long your business will be on the market before you locate the right buyer. Before you can list your catering business, you'll need to invest as much as a year in preparing it for prospective buyers. Once your business is ready for the marketplace, it could take an additional six months to a year to locate the right buyer.
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