The business-for-sale market is just as frustrating for buyers as it is for sellers these days. There are lots of buyers who want to own a lumber services business, but have limited capital to get their foot in the door.
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If you're looking for a reason to wait to put your business on the market, you'll find it. Any lumber services business can be sold at any time -- you just need to know how to influence the right buyers.
Before You Sell
The pre-sale checklist for a lumber services business is long and is full of critical tasks that will likely determine the success (or failure) of your sale. Perhaps the most important pre-sale consideration is to right-size your expectations to the realities of the market. Once your expectations are in the ballpark, you can move on to making your business presentable to prospective buyers.
Advantages of Hiring a Broker
A good broker can offer several benefits to business sellers. Right out of the gate, brokers know how to help their clients properly prepare their businesses for a sale. Second, a good business broker is a master at confidentiality locating lumber services business sale prospects and guiding sellers through negotiations. Brokerage isn't cheap. But even though you can spend as much as 10% of the sale price on a good broker, you'll likely achieve decent ROI through an improved final sale price.
Tips for Seller Financing
Capital is hard to come by these days. Banks and other lending institutions aren't eager to lend to unproven and undercapitalized lumber services business buyers regardless of the business's potential. Rather than abandon their plans entirely, many buyers are pursuing finance concessions from sellers. Although 100% seller financing isn't recommended, sellers are financing up to 70% of the sale price to close deals.
Given your interest in exit planning and in lumber services businesses, you might find these additional resources to be of interest.
If starting a lumber services business is on your agenda, these helpul resources may be just what you've been looking for:
If you consider lumber services businesses to be sales prospects, there's more applicable information for you elsewhere on our site. These helpful guides are more appropriate for you:
If you are looking for exit plan advice for a different kind of business, try our directory of exit planning guides below.