Business Exits By Industry
Selling a Cosmetics Business
You've learned a lot during your tenure as a cosmetics business owner. The next step is to position your business for the demands of the business-for-sale marketplace.
Selling a cosmetics 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.
Most cosmetics businesses are good business opportunities, a fact that is not going unnoticed by today's discerning buyers.
Legal Concerns
In a cosmetics business sale, the Letter of Intent contains the vital elements of the deal between the buyer and the seller . If you are seeking buyer concessions, the time to address them is before the Letter of Intent is drafted. For sellers, that makes a close review of the Letter of Intent more than a formality - it's a critical juncture on the path to closing.
Selling a Cosmetics Business to an Employee
Employee sales have pros and cons. A faithful employee may have the motivation and ability to continue to operate the business. If you need to sell quickly, the timeframe is condensed in an employee sale because you don't need to track down a buyer. Yet most employees lack the means to buy their employer's business at or near the asking price. A seller-financed deal may be necessary unless the employee has significant assets or investor backing.
What to Expect in a Cosmetics Business Sale
It's impossible to predict the emotional highs and lows you will experience during the sale of your cosmetics business. Given your personal investment, you may also experience disappointment in the market's assessment of your company's value. You can prepare yourself by talking through your emotions with friends and family members, and thoroughly evaluating your minimum requirements before you put your cosmetics business on the market.
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