If you plan on selling your chemical storage and handling business quickly, prepare to be disappointed.
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Undaunted by economic conditions, many chemical storage and handling business sellers are achieving their sale goals through deliberate sale strategies.
Preparing Your Chemical Storage & Handling Business for Sale
The outcome of a business sale is largely determined prior to a market listing. Profitable chemical storage and handling business sales opportunities leverage a long-term strategy to increase the value of the business to buyers. Even though it may take years to adequately position your chemical storage and handling business, the amount of preparation you perform will have direct correlation on asking and sale prices. Additionally, you'll need time to compile financials and other information that buyers will expect to receive.
A basic understanding of legal requirements is foundational for a successful business sale. Despite the confusion that exists among many sellers, the essentials of the sale are described in the Letter of Intent, a seminal document that is created prior to due diligence . If you are seeking buyer concessions, the time to address them is before the Letter of Intent is drafted. For sellers, that makes a close review of the Letter of Intent more than a formality - it's a critical juncture on the path to closing.
Tips for Seller Financing
Business buyers are in a capital crunch. Banks and other lending institutions aren't eager to lend to unproven and undercapitalized chemical storage and handling business buyers regardless of the business's potential. Rather than abandon their plans entirely, many buyers are pursuing finance concessions from sellers. Although 100% seller financing isn't recommended, sellers are financing up to 70% of the sale price to close deals.
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