Sell a Business Tips
Selling a Salvage Yard
Many business leaders say that now isn't the time to try to sell a salvage yard. But in reality, now may be the perfect time to sell a salvage yard.
Are most buyers timid about buying a salvage yard in today's economic environment? You bet.
In our opinion, that kind of thinking doesn't make sense. In fact, this might be the perfect time to sell a salvage yard. We'll tell you what you need to know to achieve a successful sale outcome
Seller Financing
Business buyers are in a capital crunch. Banks and other lending institutions aren't eager to lend to unproven and undercapitalized salvage yard 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.
Legal Considerations
There is no way around the requirement to hire professional legal assistance when you sell your salvage yard. Tackling the legal nuances and tax ramifications of a sale without a first-rate business lawyer is an invitation for disaster. It's helpful to introduce your attorney to your broker to facilitate a smooth sale and a productive working relationship.
Pre-Sale Checklist
There is a lot of work that needs to be done before you're ready to sell your salvage yard. Perhaps the most important pre-sale consideration is to right-size your expectations to the realities of the market. Armed with a realistic timeframe and asking price, you can begin to consult with your broker about the best way to approach likely buyers.
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