Personal and professional concerns surround the sale of an auto body shop equipment and supplies retail business. In addition to the personal enjoyment you received from the business, you probably have concerns about what will happen to the people who made your auto body shop equipment and supplies retail business a success.
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Yet what many sellers don't appreciate is that a down economy can present the perfect opportunity to sell a auto body shop equipment and supplies retail business.
Sale Preparations for Your Auto Body Shop Equipment & Supplies Retail Business
First-time business sellers sometimes don't realize that the success or failure of their sale is determined before it hits the market. Successful auto body shop equipment and supplies retail business sales begin with a comprehensive strategy that incorporates planning, preparation and market positioning. Even though it may take years to adequately position your auto body shop equipment and supplies retail business, the amount of preparation you perform will have direct correlation on asking and sale prices. But your efforts to improve your company's position and profitability will only be effective if you invest similar effort into the preparation of accurate financial statements for buyers.
Preparing Your Employees
As a business owner, you want to keep you employees informed about your plans; as a seller it's in your best interest to keep your employees in the dark for as long as possible. You're concerned about confidentiality, and rightfully so. However, the longer the selling process drags on, the more likely it is that rumors will begin to circulate throughout your workforce. So at some point you will have to resign yourself to the idea of telling some or all of your employees that you have listed the auto body shop equipment and supplies retail business on the market. Your employees will undoubtedly have many questions about their future with the company. Try to answer their questions to the best of your ability, but avoid making any promises that you are not authorized to make.
A basic understanding of legal requirements is foundational for a successful business sale. Despite the confusion that exists among many sellers, the essentials of the sale are described in the Letter of Intent, a seminal document that is created prior to due diligence . 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.
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