Intimidated by a sluggish economy, business buyers are more cautious than ever.
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Yet what many sellers don't appreciate is that a down economy can present the perfect opportunity to sell a architecture firm.
When to End Negotiations
Negotiations have a way of dragging on forever. There are countless details that need to be hammered out before a Letter of Intent can be prepared and the process can move on to the due diligence stage. As the seller, you'll be on the front lines of negotiation and will need to know when it's time to bring negotiations to an end. A lull in negotiations may be part of the buyer's strategy. Then again, it may be a sign that the search for common ground is a lost cause. If you are adequately prepared, you'll know what your bottom line is -- and if the buyer is unwilling to meet your bottom line requirements or if negotiations are stalled, it's time to step back from the negotiating table and re-evaluate your options.
Factoring In Economic Variables
Think an architecture firm sale is simple? Think again. A combination of economic conditions and market sentiment can complicate your sale. If you base the decision to sell your architecture firm solely on the market, you may be in for a long wait. A much better approach is to focus on the factors that always attract buyers and investors. In our experience, the most important factors in the sale of an architecture firm have little to do with the economy.
Handling Unexpected Outcomes
Every business seller dreams of a fast sale and a fat payday. However, no one told the marketplace about your expectations. The outcome of your sale will be determined by market forces - not by your personal circumstances or desires. Sometimes, sellers need to readjust their expectations to accommodate market realties. In the event that the sale fails to meet your expectations, you may want to consider taking the business off the market until you can grow it enough to achieve your desired sale price.
Given your interest in exit planning and in architecture firms, you might find these additional resources to be of interest.
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