Business Exits By Industry

Selling a Commercial Paper Business

Is the economy still a little shaky for a business sale? Sure it is. Yet commercial paper businesses haven't heard the news and are reporting steady action on the business-for-sale market.

Selling a commercial paper business isn't as simple as listing a power tool on eBay. These days, the business-for-sale market is a hostile place for inexperienced and uninformed sellers.

The good news is that ambitious entrepreneurs continue to see commercial paper businesses as a smart business investment -- and the market is rewarding owners who are willing to invest time and energy in their sale.

Broker vs. No Broker

When selling a commercial paper business, you have two choices: Hire a broker to facilitate the sale or perform the sale unassisted. Is there a cost associated with hiring a broker? Sure - about 10% of the final sale prices. But a good broker will make selling your commercial paper business much less painful. A highly skilled broker can compensate for his commission by selling your business for a significantly higher price than you could achieve on your own. But whether you use a broker or not, you may want to list your commercial paper business on BizBuySell.com and other popular online business-for-sale listing sites.

Leveraging Seller Concessions

Seller concessions are becoming more commonplace in business-for-sale transactions. In a down economy sellers become bankers; an unwillingness to finance at least part of the sale of a commercial paper business can translate into a dead deal. Capital is scarce, causing new entrepreneurs to rely on sellers to finance at least part of the purchase price. If you are unwilling or unable to offer financing, be prepared to offer other types of concessions to close the deal.

Average Preparation Time

It's critical to properly plan for the sale ofa commercial paper business. For starters, the financials need to demonstrate a track record of profitability and growth. Next, the business will need to be documented in professional financial statements and manuals that facilitate the ownership transition. Since all of this takes time and effort, a commercial paper business can rarely be ready for the marketplace in less than six months. If you can afford to wait, we recommend investing a few years in improving your business's financial position before you put it on the market.

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