Sell a Business Tips
Selling a Smoked Foods Business
Is the economy still a little shaky for a business sale? Sure it is. Yet smoked foods businesses haven't heard the news and are reporting steady action on the business-for-sale market.
Business-for-sale markets are less dependent on economic conditions than most sellers think they are.
But at Gaebler, we see smoked foods businesses still selling at a brisk pace. 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.
Understanding Market Timing
Now may be the best time to sell a smoked foods business. A depressed economy means lower interest rates; lower interest rates increase the number of investors willing to take a chance on smoked foods 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.
The Best Person to Sell Your Smoked Foods Business
There are benefits and drawbacks to handling the sale of your smoked foods business on your own. Without a doubt, you have the most at stake in the outcome of your sale. That makes you the most passionate advocate for your smoked foods business in the business-for-sale marketplace. However, your close connection to your company can also be a drawback. Nearly all sellers have an inflated sense of their company's value. At a minimum, conduct an independent appraisal of the smoked foods business to gain an objective sense of fair market value.
Seller Concessions
In the current marketplace, seller concessions can make the difference between a business sale and a smoked foods business that languishes on the market for months or even years. By far, seller financing is the most sought-after concession, especially in the current economic environment. Capital is scarce, causing new entrepreneurs to rely on sellers to finance at least part of the purchase price. As an alternative, clearly state that seller financing is not an option and consider offering other concessions to see the sale through to its completion.
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