Niche Market Exit Planning Tips
Selling a Basketball Equipment and Supplies Business
Most businesses are susceptible to economic conditions and basketball equipment and supplies businesses are no exception. But in some cases, a down economy can actually improve saleability. Now all you have to do is convince the right buyer that your business is built for long-term success.
Dire economic forecasts have forced many basketball equipment and supplies business sellers into hibernation. Instead of listing their companies now, they're hanging back until they see signs of an economic recovery.
Many business owners don't know that basketball equipment and supplies businesses are still a hot commodity, to the extent that sellers have properly prepared them for the marketplace.
Selling to a Family Member
The idea of passing a business along to a family member sounds idyllic to many business owners. in reality, a family-based basketball equipment and supplies business sale can be more complicated than selling to a stranger. In fact, selling your basketball equipment and supplies business to a family member can quickly become a no-win proposition. Whether you offer the family member special concessions or not, either the buyer or other family members may take offense. Although it may seem odd, a sale to a family member can take longer than a sale to a stranger because it may take time to work through family issues prior to closing.
You'll need to incorporate the cost of the sale into the calculation the minimum price you are willing to receive for your basketball equipment and supplies business. Hiring a broker is a mixed bag because although brokers can increase the sale price, they also take a 10% fee. Depending on your circumstances, you may also incur substantial expenses in hiring legal, appraisal and accounting professionals. Furthermore, your time has value, so you may need to include a personal compensation consideration in your expense estimates.
Hoping for a quick basketball equipment and supplies business sale? You may be disappointed. Although asking price and other factors contribute to sale time, it's difficult to predict how long your business will be on the market before you locate the right buyer. Before you can list your basketball equipment and supplies business, you'll need to invest as much as a year in preparing it for prospective buyers. Even though it's conceivable that an attractive opportunity could sell in weeks, an immediate flood of offers could indicate that the business is underpriced.
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