Selling a cattle feedlots business? You'll need to be prepared to address a variety of challenges that are common in the business-for-sale marketplace.
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In our opinion, that kind of thinking doesn't make sense. In fact, this might be the perfect time to sell a cattle feedlots business. Here's how to do it . . .
Seller concessions sweeten the deal for buyers and are a necessary fixture in a sluggish economy. But don't limit your view of concessions to financial incentives. When you've reached your limit on price, consider offering non-cash concessions to encourage a commitment from the buyer. A limited amount of training and mentoring may seem inconsequential to you, but to a young cattle feedlots business owner, they can be critical launching points for their ownership journey.
The upfront time you investment in the sale of your cattle feedlots business will pay big dividends at closing. The first item on your checklist should be a reality check -- if you plan to sell your business for top dollar in just a few short months, you need to adjust your expectations%However, your first priority should be to set realistic expectations for the selling process and its eventual outcome. After you have consulted with a business broker to right size your expectations, you'll need to add several items to your checklist, including financial statement preparation, pre-sale appraisals, financial planning, market positioning and other tasks designed to communicate value to prospective buyers.
A good broker can offer several benefits to business sellers. Right out of the gate, brokers know how to help their clients properly prepare their businesses for a sale. Second, a good business broker is a master at confidentiality locating cattle feedlots business sale prospects and guiding sellers through negotiations. 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.
Ready to learn more? You may find these additional resources to be of interest.
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