Niche Exit Planning Tactics
Selling a Wholesale Art Supply Business
The business-for-sale marketplace has experienced no shortage of uncertainty over the past several years. But wholesale art supply businesses haven't heard the news and are reporting steady action on the business-for-sale market.
Personal and professional concerns surround the sale of a wholesale art supply business. In our experience, a common owner concern is how the sale will affect customers and employees.
The business-for-sale market is extremely dynamic. Knowledgeable entrepreneurs understand that market timing isn't nearly as important as other factors in a wholesale art supply business sale. To improve sale outcomes, you will simply need to tailor your wholesale art supply business to today's buyers.
What About Market Conditions?
At first glance, today's market would seem to be a hostile place for wholesale art supply business sellers. So far, government intervention and promises that the economy is slowly recovering haven't been enough to alleviate many entrepreneur's fears. However, many business sellers don't realize that a full economic rebound can have devastating consequences, particularly if sellers who have waited to list their businesses suddenly create a glut in the business-for-sale marketplace. So what's our point? The economy isn't the most important factor in the sale of your business. Instead, you should be focusing on making your wholesale art supply business as attractive as possible so to buyers right now.
Buyer Concessions
Sellers aren't the only ones who can make concessions in a business sale. In many instances, sellers can request buyer concessions. For example, if the buyer needs seller financing, you can leverage a five-year loan to push for a higher sales price. Although you won't see all of the proceeds upfront, you'll earn interest on the balance and realize a higher price than you would in an all cash deal. Asset exclusions, retained ownership shares and long-term contracts with another of the seller's companies can also be leveraged to extract concessions from buyers.
Working with Accountants
Accountants come into play at several stages of the sale process. Before your wholesale art supply business goes on the market, you should sit down with your accountant to clarify your financial goals and the tax consequences of a sale. You may also want your accountant to assist in the preparation of professional financials to present to serious buyers. With seller financing becoming common, professional accountants are playing a more central role in negotiations and buyer qualification.
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