Optimizing Business Exits

Selling a Rags Business

We hear from a lot of business owners who are timid about listing their rags business. Despite the mood of the market, we think there are still opportunities to receive a good price for your rags business. Here's what you need to know . . .

Are most buyers timid about buying a rags business in today's economic environment? You bet.

Yet everyday, hundreds of listed rags businesses manage to pique the interest of qualified buyers. They do it by paying attention to the details that other business sellers overlook.

Sale Preparations for Your Rags Business

The outcome of a business sale is largely determined prior to a market listing. Successful rags business sales opportunities leverage a long-term strategy to increase the value of the business to buyers. Even though it may take years to adequately position your rags business, the amount of preparation you perform will have direct correlation on asking and sale prices. But your efforts to improve your company's position and profitability will only be effective if you invest similar effort into the preparation of accurate financial statements for buyers.

Seller Financing

Capital is hard to come by these days. Financial institutions have tightened up their lending policies, making it difficult for inexperienced and undercapitalized entrepreneurs to buy rags businesses. As a result, buyers expect sellers to finance a significant portion of the sale. As you prepare for the sale of your rags business, expect to be asked to finance a substantial part of the sale price.

Selecting a Broker

First-rate business brokers deliver prospects and profits to their clients. In the rags 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.

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