We hear it all the time: "I'm waiting until the economy recovers to list my business."
(article continues below)
Eventually, it will the time will come to exit your business. As a consequence, you have a substantial stake in knowing how to receive maximum price for your auto parts business.
Working with Appraisers
An experienced appraiser is part and parcel of a successful auto parts business sale. Leading industry appraisers equip sellers with a value gauge that can be accessed during negotiations. If you're disappointed with the appraiser's estimate of your company's worth, you have the option of seeking a second opinion. However, it's more often the case that you will need to adjust your expectations of your business's value to buyers.
Current Market Conditions
No one plans to sell an auto parts business in a down economy. Entrepreneurs and investors still exhibit healthy skepticism, despite initial indication that recovery has begun. But when the economy fully rebounds, a shadow inventory of auto parts businesses will flood the market and drive prices down even further. So what's our point? The economy isn't the most important factor in the sale of your business. Instead, you should be focusing on making your auto parts business as attractive as possible so to buyers right now.
Sweetening the Deal
Today's auto parts business buyers expect sellers to offer concessions to persuade them to close the deal. Although a lower asking price is the ultimate seller concession, a price reduction isn't the only way to attract serious buyers. When you've reached your limit on price, consider offering non-cash concessions to encourage a commitment from the buyer. A limited amount of training and mentoring may seem inconsequential to you, but to a young auto parts business owner, they can be critical launching points for their ownership journey.
Ready to learn more? You may find these additional resources to be of interest.
If starting an auto parts business is on your agenda, these guides will help you get started:
If you want information on how to sell to auto parts businesses, there's more applicable information for you elsewhere on our site. Try these useful resources instead:
If you are eager to get business succession tips for a different industry, please browse our directory of exit planning guides below.