Exit Planning Tips
Selling a Hardware Store
No one said selling your business in a depressed economy would be easy. Although it's going to take some work, there is a good chance you can still sell your company at or even above fair market value.
We're seeing a high volume of shadow inventory in the business-for-sale market.
Eventually, it will the time will come to exit your business. When that happens, your future plans will be dependent on your ability to receive the highest possible sale price for your hardware store.
Preparing Family Members
Many sellers embarked on their hardware store sale without adequately considering the impact it will have on their families. Whether you realize it or not, your hardware store has been an important part of your family life. The sale of the business will likely result in new family dynamics. Subsequently, selling a hardware store has to include ample communication and shared decision-making.
Business Assets
During due diligence, the buyer will undoubtedly conduct his own appraisal of your hardware store's real assets. Most sellers, however, conduct a pre-sale appraisal to gain an accurate gauge of asset value prior to negotiations. A professional appraisal is a necessity because it gives you the information you need to negotiate a sale price. During your appraisal process, you should also note the condition of your assets. Cost-effective repairs can then be made before your list your hardware store.
Sale Documents
We run into a lot of hardware store sellers who intend to wait until the final contract to negotiate details. Big mistake. With few exceptions, sale structure is hammered out early, in the Letter of Intent . 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.
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