Sell a Business Tips

Selling a Sporting Goods Rental Business

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

Business-for-sale markets are less dependent on economic conditions than most sellers think they are.

But at Gaebler, we see sporting goods rental 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.

Timing the Market

Now may be the best time to sell a sporting goods rental business. With interest rates at all-time lows, it's easy to see why sporting goods rental businesses are an appealing investment opportunity for savvy investors. 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.

Workforce Concerns

As a business owner, you want to keep you employees informed about your plans; as a seller it's in your best interest to keep your employees in the dark for as long as possible. You're concerned about confidentiality, and rightfully so. However, the longer the selling process drags on, the more likely it is that rumors will begin to circulate throughout your workforce. So at some point you will have to resign yourself to the idea of telling some or all of your employees that you have listed the sporting goods rental business on the market. Maintain a positive tone in your conversations and answer your employees questions as completely as you can without jeopardizing the sale.

Tapping Into Business Networks

These days, sporting goods rental business buyers are an extremely diverse group with backgrounds in and outside of the industry. Online business-for-sale databases have value, although they appeal to an exceptionally wide base of prospects. More focused prospects are typically found within industry networks. When leveraging industry relationships for sales prospects, you'll need to be cognizant of the potential for competitors to use knowledge of your sale against you in the marketplace. Use good sense in restricting the flow of information within the industry and focusing your efforts toward trusted industry allies.

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