Business Exits By Industry
Selling a Contract Packaging Business
With the economy limping along, many contract packaging business owners are hesitant to put their businesses on the market. Don't be deterred by economic uncertainty. There are plenty of reasons why this is the right time to put your contract packaging business on the market.
Most entrepreneurs have the skills and stamina to endure and prosper during the sale ofa contract packaging business.
Many business owners don't know that contract packaging businesses are still a hot commodity, to the extent that sellers have properly prepared them for the marketplace.
Sweetening the Deal
Seller concessions sweeten the deal for buyers and are a necessary fixture in a sluggish economy. Concessions can consist of non-cash as well as cash incentives. It's not unusual for sellers to offer non-cash incentives to help inexperienced entrepreneurs get off to a successful start. In the current economy, seller financing is becoming common in contract packaging business sales. If the prospect is inexperienced or lacks credentials in the industry, you can also offer to stay with the business for a specified period of time to help the new owner get on his feet and introduce him to your network of industry contacts.
Broker vs. No Broker
When selling a contract packaging business, you have two choices: Hire a broker to facilitate the sale or perform the sale unassisted. Is there a cost associated with hiring a broker? Sure - about 10% of the final sale prices. But a good broker will make selling your contract packaging business much less painful. You can also expect to receive a higher sales price for your business in a broker-assisted deal.
Preparing Family Members
You're ready to sell your contract packaging business, but is your family prepared for the transition? Unfortunately, families often experience turmoil during a sale even when the primary owner is convinced it's the right decision. Unless everyone is prepared for it, the sale could have a devastating effect on your family. Subsequently, selling a contract packaging business should allow opportunities for all family members to share their feelings and offer input about the sale process.
Share this article
Additional Resources for Entrepreneurs