Niche Market Exit Planning Tips
Selling a Barbers' Equipment and Supplies Business
Maybe you're counting on your barbers' equipment and supply business to be a stepping stone to your next big business venture. Maybe it's your retirement fund. Either way, you need to maximize the price it gets in the business-for-sale marketplace.
In any economy, there is a right way and a wrong way to sell a business.
Fortunately for sellers, forward-thinking entrepreneurs continue to be attracted to barbers' equipment and supply businesses that exhibit strong financials and potential for future growth.
Timing the Market
Worried about timing? Believe it or not, this could be an advantageous time to put a barbers' equipment and supply business up for sale. A depressed economy means lower interest rates; lower interest rates increase the number of investors willing to take a chance on barbers' equipment and supply businesses. Sooner or later, rates will rise, increasing the risk for prospective buyers of barbers' equipment and supply businesses. At Gaebler, we recognize the value of timing the sale of your barbers' equipment and supply business. But we think it's more important to properly position your business for current market conditions -- whatever they may be.
Advantages of Hiring a Broker
Brokers give barbers' equipment and supply business sellers distinct advantages in the marketplace. First, business brokers are in tune with the realities of the market and are skilled at helping owners make their businesses attractive to premium buyers. More importantly, brokers have the ability to identify serious buyers and maintain confidentiality throughout the sale process. Typical brokerage rates (a.k.a. success fees) run 10% of the final price - an expense that is usually recouped through a higher sales price and less time on the market.
Sweetening the Deal
Today's barbers' equipment and supply business buyers expect sellers to offer concessions to persuade them to close the deal. Concessions can consist of non-cash as well as cash incentives. In fact, many concessions have little or no financial impact, but go a long way toward making the deal more palatable to young entrepreneurs. In the current economy, seller financing is becoming common in barbers' equipment and supply 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.
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