Exit Planning Advice By Market
Selling an Auto Buyers Business
A lot can go wrong during the sale of an auto buyers business even if the seller has previous business sales experience. We'll tell you how to keep your sale and your future plans on track.
You survived all the ups and downs of owning a business. Next, you'll need to prepare yourself to address the rigors of selling an auto buyers business.
Yet what many sellers don't appreciate is that a down economy can present the perfect opportunity to sell a auto buyers business.
Should I Hire a Business Broker?
When selling an auto buyers business, you have two choices: Hire a broker to facilitate the sale or perform the sale unassisted. Is there a cost associated with hiring a broker? Sure - about 10% of the final sale prices. But a good broker will make selling your auto buyers business much less painful. You can also expect to receive a higher sales price for your business in a broker-assisted deal.
Sweetening the Deal
Like it or not, prospective buyers are going to ask you to make certain concessions in the sale of your auto buyers business. Concessions can consist of non-cash as well as cash incentives. When you've reached your limit on price, consider offering non-cash concessions to encourage a commitment from the buyer. In the current economy, seller financing is becoming common in auto buyers business sales. If the prospect is inexperienced or lacks credentials in the industry, you can also offer to stay with the business for a specified period of time to help the new owner get on his feet and introduce him to your network of industry contacts.
Laying the Groundwork
Effective auto buyers business preparation focuses on communicating value to prospective buyers. Professional business brokers understand buyers and know how to properly communicate an auto buyers business to the marketplace. At a minimum, you'll want to position your business to receive the highest possible sale price, prepare a packet for prospective buyers and perform an initial appraisal before you put your auto buyers business on the market.
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