Business Exit Planning
Selling a Mini Cars Business
Does the economy have you down? For exiting owners, the idea of listing their company now can be terrifying. Fortunately, a mini cars business sale isn't as scary as it seems.
Business buyers are a timid lot, even more so now that they are facing an uncertain economic landscape.
You'll always have an excuse for not putting your business on the market. With hard work and dedication, your mini cars business can be sold at or above fair market value right now.
Timing the Market
Now may be the best time to sell a mini cars business. A depressed economy means lower interest rates; lower interest rates increase the number of investors willing to take a chance on mini cars businesses. 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.
Working with Accountants
Accountants lay the financial groundwork for a business sale. From a seller perspective, an accountant can offer personal financial assistance, especially when it comes to handling the disposition of sale proceeds. Brokers often advise their clients to have an accountant perform an audit of the business prior to sale. With seller financing becoming common, professional accountants are playing a more central role in negotiations and buyer qualification.
Pros & Cons of a Sale to an Employee
Employee sales have pros and cons. A key employee may seem like a natural sales prospect. 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. However, some employees feel they are entitled to special treatment and pricing, especially if they have played a key role in the company's success. Most of the time, employees also expect owners to finance a large portion of the sale. So if you aren't willing to finance the sale or need to get top dollar for your mini cars business, a sale to an employee is probably not a possibility.
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