Waiting for better economic times to sell your company? That's a common anthem in the small business community.
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Growth-minded entrepreneurs also find an appealing apple products business hard to pass up. So for apple products business sellers, today's market is all about convincing buyers that the numbers make their companies worth the asking price.
We run into a lot of apple products business sellers who intend to wait until the final contract to negotiate details. Big mistake. With few exceptions, sale structure is hammered out early, in the Letter of Intent . If you are seeking buyer concessions, the time to address them is before the Letter of Intent is drafted. For sellers, that makes a close review of the Letter of Intent more than a formality - it's a critical juncture on the path to closing.
Leveraging Seller Concessions
Seller concessions are becoming more commonplace in business-for-sale transactions. Not surprisingly, seller financing is routinely requested by today's buyers. With entrepreneurs struggling to secure capital, you may be the buyer's only source of financing. If you are unwilling or unable to offer financing, be prepared to offer other types of concessions to close the deal.
Understanding Market Timing
Worried about timing? Believe it or not, this could be an advantageous time to put an apple products business up for sale. Although the economy is generally struggling, low interest rates make apple products businesses more attractive to entrepreneurs who want to get in the game. As the interest rates rise, it will be more difficult for buyers to make the numbers work in their favor. Market conditions can be intimidating. But your larger concern should be whether or not your business is ready to be presented to qualified sale prospects.
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