Exit Planning Techniques By Market
Selling a Forest Management Business
You've learned a lot during your tenure as a forest management business owner. Now the trick is to convince cautious buyers that your operation is worth the asking price.
You need to get a good price for your forest management business. To get there, you'll need to set realistic expectations and follow a deliberate selling strategy.
Growth-minded entrepreneurs also find an appealing forest management business hard to pass up. To sell your forest management business, you'll need to go the extra mile to prove your company has the potential to deliver steady revenue and a solid ROI.
When Is the Right Time to Sell?
When is it the right time to sell your forest management business? If you're asking the question, now may be the time to put your business on the market. There are a lot of naysayers out there advising forest management business sellers to put their plans on hold until the economy fully rebounds. At Gaebler, we have a much more optimistic view of your chances in the forest management business-for-sale market. The inventory of what we consider to be quality forest management businesses is actually low right now and there is room for the right sellers to realize substantial gains with investment-conscious buyers.
Signs You're in Over Your Head
It's not uncommon for the owners of small forest management businesses to adopt a go-it-alone sale strategy. Plenty of owners sell their forest management businesses unassisted. Although there are exceptions, solo sales typically take longer and are less productive than brokered sales. As a rule, no business should sit on the market for more than six months without attracting the interest of at least a handful of qualified buyers. Lack of buyer enthusiasm or persistence indicates that something is wrong. If that occurs, it's time to bring in the professionals to get your sale back on track.
Negotiation 101
As a business seller, you have to be at the top of your negotiating game. More often than not, the person with the most knowledge will come out on top in a forest management business negotiation. However, the first step in good negotiating is to develop a sense of what you need to get out of the deal. A thorough understanding of sale price, possible concessions and other bottom line requirements gives you the ability to negotiate with confidence. Consult with a broker, advisor, or negotiation team to clarify your expectations and devise a negotiation strategy.
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