A business exit is always a trying experience. But when you need to sell your boiler compounds business in a depressed economy, the challenges can seem insurmountable.
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It may require a little finesse, but if you're prepared to take the next step in your entrepreneurial career then it's time to brave the boiler compounds business market and locate potential buyers ASAP.
Broker vs. No Broker
When selling a boiler compounds 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 boiler compounds business much less painful. You can also expect to receive a higher sales price for your business in a broker-assisted deal.
Sellers aren't the only ones who can make concessions in a business sale. In many instances, sellers can request buyer concessions. For example, if the buyer needs seller financing, you can leverage a five-year loan to push for a higher sales price. Although you won't see all of the proceeds upfront, you'll earn interest on the balance and realize a higher price than you would in an all cash deal. You can also choose to exclude certain items like equipment or inventory from the deal if the buyer isn't willing to meet your price expectations. By selling excluded assets on the secondary market, you can compensate for an anemic sale price.
Preparing Your Boiler Compounds Business for Sale
The outcome of a business sale is largely determined prior to a market listing. Profitable boiler compounds business sales begin with a comprehensive strategy that incorporates planning, preparation and market positioning. Even though it may take years to adequately position your boiler compounds business, the amount of preparation you perform will have direct correlation on asking and sale prices. It is especially helpful if your financial reports can demonstrate a multiyear growth trend for potential buyers.
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