Business Exits By Industry
Selling a Coffee Mills Business
Economic uncertainty influences the timing of many coffee mills business sales. But based on what we're seeing in the business-for-sale marketplace, we don't think economic conditions should deter you from putting your coffee mills business on the market.
Like it or not, a coffee mills business sale is a complicated affair, made even more difficult by the emotions associated with leaving a business you've poured your life into. In addition to the personal enjoyment you received from the business, you probably have concerns about what will happen to the people who made your coffee mills business a success.
Many business owners don't know that coffee mills businesses are still a hot commodity, to the extent that sellers have properly prepared them for the marketplace.
So you've decided to sell your coffee mills business. That's great -- but have you considered what's next? Are you moving on to another business venture? Are you retiring? If you aren't sure what's next, you could be in trouble because future plans and selling strategy are inextricably connected. For example, seller financing can be an extremely valuable concession, especially in the current economy. But if you need all of the proceeds of the sale upfront, seller financing is off the table and you'll need to find a different way to make your coffee mills business attractive to buyers.
Tips for Seller Financing
The shortage in today's marketplace isn't interested buyers -- it's capital. Financial institutions have tightened up their lending policies, making it difficult for inexperienced and undercapitalized entrepreneurs to buy coffee mills businesses. As a result, buyers expect sellers to finance a significant portion of the sale. Although 100% seller financing isn't recommended, sellers are financing up to 70% of the sale price to close deals.
In a coffee mills business sale, the Letter of Intent contains the vital elements of the deal between the buyer and the seller . If you are seeking buyer concessions, the time to address them is before the Letter of Intent is drafted. Never sign a Letter of Intent until it has been properly reviewed by your attorney and you are in complete agreement with everything it contains.
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