Dire economic forecasts have forced many ladders business sellers into hibernation. Instead of listing their companies now, they're hanging back until they see signs of an economic recovery.
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At Gaebler, we think that's a mistake because with adequate preparation and the right sale strategy, this might be the best time to put your ladders business on the market.
Selecting a Broker
First-rate business brokers deliver prospects and profits to their clients. In the ladders business industry, experience is a must-have characteristic for qualified brokerage. The chemistry you have with your broker is a consideration. If you don't connect with a specific broker, move on to someone else - even if the first broker looks great on paper.
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. The time and expense of locating the right buyer will be nonexistent and you won't have to spend weeks showing the buyer every square inch of the company. But in many cases, employees expect to get a deal from their employer based on their years of service to the company. Seller financing is one way to get around the capital deficit of an employee-based ladders business sale, as long as you are willing to vet the employee's credit worthiness the same as any other buyer.
Hoping for a quick ladders business sale? You may be disappointed. Although asking price and other factors contribute to sale time, it's difficult to predict how long your business will be on the market before you locate the right buyer. To adequately prepare your business listing, plan on spending six months to a year prior to listing. Once your business is ready for the marketplace, it could take an additional six months to a year to locate the right buyer.
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