Exit Planning Techniques By Market
Selling a Farm and Ranch Real Estate Business
No one said selling your business in a depressed economy would be easy. Fortunately, a farm and ranch real estate business sale isn't as scary as it seems.
The farm and ranch real estate business-for-sale marketplace is a nuanced environment, full of pitfalls for sellers who aren't prepared for its demands.
There is no simple way to sell a business. But the most prepared farm and ranch real estate business sellers are achieving fair market value and more for their companies through persistence and the application of sound selling techniques.
Signs You're in Over Your Head
The farm and ranch real estate business-for-sale marketplace is a mixed bag of brokered sales and solo efforts. Although there are exceptions, solo sales typically take longer and are less productive than brokered sales. If you decide to go solo and your business has been on the market for more than six months without a single buyer inquiry, it's time to hire a professional business broker. Likewise, if buyers seem to express interest but quickly exit when you quote the asking price, it's a sign that your farm and ranch real estate business is priced out of the market. The remedy is professional brokerage or a consultation with more experienced sellers.
Why Confidentiality Matters
In the business-for-sale universe, publicity translates into risk. A low-key selling strategy is a low risk activity because you can control who does (and doesn't) know that your business is on the market. Eventually, word will leak out. When that happens, it can damage your standing with customers and vendors. Although it can be difficult, it's important to strike a balance between confidentiality and sale promotion. Brokers and consultants can mitigate the risk by implementing confidential sale techniques.
Current Market Conditions
At first glance, today's market would seem to be a hostile place for farm and ranch real estate business sellers. So far, government intervention and promises that the economy is slowly recovering haven't been enough to alleviate many entrepreneur's fears. But when the economy fully rebounds, a shadow inventory of farm and ranch real estate businesses will flood the market and drive prices down even further. So what's our point? The economy isn't the most important factor in the sale of your business. Instead, you should be focusing on making your farm and ranch real estate business as attractive as possible so to buyers right now.
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