Dire economic forecasts have forced many addressing machines and supplies business sellers into hibernation. Instead of listing their companies now, they're hanging back until they see signs of an economic recovery.
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Yet what many sellers don't appreciate is that a down economy can present the perfect opportunity to sell a addressing machines and supplies business.
Timing the Market
Now may be the best time to sell an addressing machines and supplies business. A depressed economy means lower interest rates; lower interest rates increase the number of investors willing to take a chance on addressing machines and supplies 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.
As your addressing machines and supplies businesssale nears completion, there is a lot of work remaining to be done. The transition to the new owner, the distribution of sale proceeds and other issues can weigh heavily on sellers. If there are pending details that still need to ironed out, address them ASAP to ensure a smooth closing and transition.
The shortage in today's marketplace isn't interested buyers -- it's capital. Banks and other lending institutions aren't eager to lend to unproven and undercapitalized addressing machines and supplies business buyers regardless of the business's potential. Rather than abandon their plans entirely, many buyers are pursuing finance concessions from sellers. It's common for sellers to finance as much as 70% of the purchase price with a payoff period of four or five years, sometimes in the form of a balloon payment at the end of the repayment period.
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