Niche Market Exit Planning Tips
Selling a Breads Business
There's a right way and a wrong way to sell a breads business these days. We'll tell you how to keep your sale and your future plans on track.
Market timing is a perennial problem for business sellers.
Success is a factor of preparation, execution and a keen eye for the market. As a business seller, you need to go into the process with the mental goal of presenting your business in the best possible light.
When to End Negotiations
If the devil is in the details, the negotiation stage of a breads business sale is the devil's playground. There are countless details that need to be hammered out before a Letter of Intent can be prepared and the process can move on to the due diligence stage. As the seller, you'll be on the front lines of negotiation and will need to know when it's time to bring negotiations to an end. In a breads business sale, a stalled negotiation can be an indication that the deal is dead. If you are adequately prepared, you'll know what your bottom line is -- and if the buyer is unwilling to meet your bottom line requirements or if negotiations are stalled, it's time to step back from the negotiating table and re-evaluate your options.
Benefits of Third-Party Assistance
Rarely, if ever, do owners sell a breads business without outside assistance. Although it's wise to recruit a business broker, brokerage isn't your only concern. Additionally, you may want to hire professionals for legal, valuation and other functions before you put your business on the market. The benefit of soliciting outside assistance early is that seemingly small decisions now can have big consequences later. By consulting professionals throughout the sale of your breads business, you can avoid painful tax and legal complications both before and after closing.
Timing the Market
Worried about timing? Believe it or not, this could be an advantageous time to put a breads business up for sale. Although the economy is generally struggling, low interest rates make breads businesses more attractive to entrepreneurs who want to get in the game. As the interest rates rise, it will be more difficult for buyers to make the numbers work in their favor. Market conditions can be intimidating. But your larger concern should be whether or not your business is ready to be presented to qualified sale prospects.
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