Exit Planning Techniques By Market
Selling a Food and Beverage Services Business
Nervous about selling your food and beverage services business? You shouldn't be. Our tips will help you get the highest price for your food and beverage services business, regardless of what's happening with the economy.
Economic data is scary stuff for small business owners. But quarterly data dumps don't impact food and beverage services business sales nearly as much as sale strategy.
Fortunately for sellers, forward-thinking entrepreneurs continue to be attracted to food and beverage services businesses that exhibit strong financials and potential for future growth.
How to Increase Sale Price
A successful food and beverage services business requires an investment of both time and money. Fortunately, a business broker can minimize the impact on your bank account and personal well-being. If you try to sell your business without a broker, your time will be consumed by the details of the sale. Subsequently, you'll be distracted from the demands of your auto supply store, business will suffer, and the sale price you receive for your company will be dramatically reduced. For a lot reasons, a decision to hire a broker is almost always the right decision, especially for sellers who need to receive top dollar for their food and beverage services businesses.
Timing the Market
Worried about timing? Believe it or not, this could be an advantageous time to put a food and beverage services business up for sale. A depressed economy means lower interest rates; lower interest rates increase the number of investors willing to take a chance on food and beverage services businesses. As the interest rates rise, it will be more difficult for buyers to make the numbers work in their favor. So we see market timing as a concern that can be easily mitigated by applying fundamental sales strategies and adequately preparing your company for buyers.
Pros & Cons of a Sale 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. However, some employees feel they are entitled to special treatment and pricing, especially if they have played a key role in the company's success. Seller financing is one way to get around the capital deficit of an employee-based food and beverage services business sale, as long as you are willing to vet the employee's credit worthiness the same as any other buyer.
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