Niche Market Exit Planning Tips
Selling a Bus Parts and Supplies Business
We hear from a lot of business owners who are timid about listing their bus parts and supplies business. Despite the mood of the market, we think there are still opportunities to receive a good price for your bus parts and supplies business. Here's what you need to know . . .
It's a fact: Successful business sales take time.
Despite the conventional wisdom, we believe current economic conditions are right for selling a bus parts and supplies business. We'll tell you what you need to know to achieve a successful sale outcome
Advantages of Hiring a Broker
There are many reasons why hiring a broker makes sense in bus parts and supplies business sales. Right out of the gate, brokers know how to help their clients properly prepare their businesses for a sale. 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.
Understanding Market Timing
Now may be the best time to sell a bus parts and supplies business. A depressed economy means lower interest rates; lower interest rates increase the number of investors willing to take a chance on bus parts and supplies businesses. As the interest rates rise, it will be more difficult for buyers to make the numbers work in their favor. So we see market timing as a concern that can be easily mitigated by applying fundamental sales strategies and adequately preparing your company for buyers.
Sellers aren't the only ones who can make concessions in a business sale. In many instances, sellers can request buyer concessions. Although this scenario frequently plays out around seller financed deals, it's possible to push for a higher sales price or other form of compensation if you agree to mentor the buyer for a specified period of time. Like seller concessions, buyer concessions should be addressed during negotiations, before the preparation of a Letter of Intent.
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