A business exit is always a trying experience. But when you need to sell your agricultural organization in a depressed economy, the challenges can seem insurmountable.
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However, serious buyers also understand the value of a good agricultural organization. So for agricultural organization sellers, today's market is all about convincing buyers that the numbers make their companies worth the asking price.
Are You the Right Person to Sell Your Business?
An unassisted business sale is a double-edged sword. Without a doubt, you have the most at stake in the outcome of your sale. That makes you the most passionate advocate for your agricultural organization 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 agricultural organization to gain an objective sense of fair market value.
Negotiating Your Sale
As a business seller, you have to be at the top of your negotiating game. In an agricultural organization sale, knowledge is power -- the more you know about your business and prospective buyers, the easier it is to sway negotiations in your favor. But great negotiation begins with knowing yourself. What is the realistic price range for your agricultural organization? What is the minimum amount you're willing to settle on? Are you willing to offer seller financing or other concessions to close the deal? If you can't answer these questions, you're simply not ready to sit down at the negotiation table yet. Consult with a broker, advisor, or negotiation team to clarify your expectations and devise a negotiation strategy.
Before You Sell
There is a lot of work that needs to be done before you're ready to sell your agricultural organization. The first item on your checklist should be a reality check -- if you plan to sell your business for top dollar in just a few short months, you need to adjust your expectations%However, your first priority should be to set realistic expectations for the selling process and its eventual outcome. 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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