Business buyers face their own set of frustrations and complications. Although there are plenty of entrepreneurs who want to buy a band instruments business, capital restrictions are holding them back.
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At Gaebler, we think waiting for the economy to rebound is a mistake for many business owners. Any band instruments business can be sold at any time -- you just need to know how to influence the right buyers.
Leveraging Seller Concessions
Seller concessions are becoming more commonplace in business-for-sale transactions. By far, seller financing is the most sought-after concession, especially in the current economic environment. Capital is scarce, causing new entrepreneurs to rely on sellers to finance at least part of the purchase price. Other common seller concessions include staying on the mentor the new owner, non-compete clauses, and working as a consultant to mitigate the impact of new ownership.
An experienced appraiser is part and parcel of a successful band instruments business sale. Leading industry appraisers equip sellers with a value gauge that can be accessed during negotiations. Even though you may disagree with the appraiser's value estimates, it's important to give your appraiser the information and independence he needs to present an objective opinion. To ensure accuracy, ask your broker to provide references for appraisers with industry experience.
What About Market Conditions?
No one plans to sell a band instruments business in a down economy. Although the economy is gaining steam, recovery is slow and entrepreneurs are holding their cards close to their vests. But when the economy fully rebounds, a shadow inventory of band instruments businesses will flood the market and drive prices down even further. The simple truth is that the economy shouldn't dictate whether or not now is the right time to sell a band instruments business. Your individual circumstances and personal goals are more influential factors in determining when it's time to put your business on the market.
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