Business Exit Planning

Selling a Manufacturer of Saddlery and Harness

Few entrepreneurs relish the idea of selling a business in a struggling economy. Yet manufacturer of saddlery and harness continue to be sold at a brisk pace, outperforming the sales of many other types of businesses.

The economy isn't the only thing that is uncertain these days. So are manufacturer of saddlery and harness buyers, many of whom are waiting to pull the trigger on their next acquisition.

The economy hasn't squashed the market for manufacturer of saddlery and harness. 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.

Sale Costs

The calculation of your asking price should include a buffer to cover the expense of the sale process. Hiring a broker is a mixed bag because although brokers can increase the sale price, they also take a 10% fee. Depending on your circumstances, you may also incur substantial expenses in hiring legal, appraisal and accounting professionals. Likewise, you'll need to consider how much it will cost to promote the sale as well as the lost time it will take for you and your team to navigate the sale process.

Leveraging Seller Concessions

Seller concessions are becoming more commonplace in business-for-sale transactions. By far, seller financing is the most sought-after concession, especially in the current economic environment. With entrepreneurs struggling to secure capital, you may be the buyer's only source of financing. If you are unwilling or unable to offer financing, be prepared to offer other types of concessions to close the deal.

Timing the Market

Now may be the best time to sell a manufacturer of saddlery and harness. Although the economy is generally struggling, low interest rates make manufacturer of saddlery and harness more attractive to entrepreneurs who want to get in the game. As the interest rates rise, it will be more difficult for buyers to make the numbers work in their favor. So we see market timing as a concern that can be easily mitigated by applying fundamental sales strategies and adequately preparing your company for buyers.

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