Sell a Company Niche Market Guides

Selling a Leather Scrap Business

You've learned a lot during your tenure as a leather scrap business owner. The next step is to position your business for the demands of the business-for-sale marketplace.

If you listen to many entrepreneurs, there never seems to be a good time to put a small business on the market.

But at Gaebler, we see leather scrap businesses still selling at a brisk pace. Like always, unprofitable and poorly positioned businesses struggle to find buyers while sellers who have invested time and effort to prepare their sale are being rewarded in the marketplace.

Broker vs. No Broker

When selling a leather scrap business, you have two choices: Hire a broker to facilitate the sale or perform the sale unassisted. Although brokerage fees can be substantial, the right broker can reduce the amount of time your leather scrap business sits on the market. You can also expect to receive a higher sales price for your business in a broker-assisted deal.

Closing Strategies

Today's leather scrap business buyers expect sellers to offer concessions to persuade them to close the deal. Concessions can consist of non-cash as well as cash incentives. It's not unusual for sellers to offer non-cash incentives to help inexperienced entrepreneurs get off to a successful start. A limited amount of training and mentoring may seem inconsequential to you, but to a young leather scrap business owner, they can be critical launching points for their ownership journey.

Average Timeframes

Hoping for a quick leather scrap 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. Before you can list your leather scrap business, you'll need to invest as much as a year in preparing it for prospective buyers. Even though it's conceivable that an attractive opportunity could sell in weeks, an immediate flood of offers could indicate that the business is underpriced.

Share this article


Additional Resources for Entrepreneurs

Lists of Venture Capital and Private Equity Firms

Franchise Opportunities

Contributors

Business Glossary