You need to get a good price for your custom clothing and accessories business. To get there, you'll need to set realistic expectations and follow a deliberate selling strategy.
(article continues below)
Despite the conventional wisdom, we believe current economic conditions are right for selling a custom clothing and accessories business. We'll tell you what you need to know to achieve a successful sale outcome
Current Market Conditions
No one plans to sell a custom clothing and accessories business in a down economy. Entrepreneurs and investors still exhibit healthy skepticism, despite initial indication that recovery has begun. However, many business sellers don't realize that a full economic rebound can have devastating consequences, particularly if sellers who have waited to list their businesses suddenly create a glut in the business-for-sale marketplace. So what's our point? The economy isn't the most important factor in the sale of your business. Instead, you should be focusing on making your custom clothing and accessories business as attractive as possible so to buyers right now.
During due diligence, the buyer will undoubtedly conduct his own appraisal of your custom clothing and accessories business's physical assets. Most sellers, however, conduct a pre-sale appraisal to gain an accurate gauge of asset value prior to negotiations. A professional appraisal is a necessity because it gives you the information you need to negotiate a sale price. During your appraisal process, you should also note the condition of your assets. Cost-effective repairs can then be made before your list your custom clothing and accessories business.
We run into a lot of custom clothing and accessories business sellers who intend to wait until the final contract to negotiate details. Big mistake. With few exceptions, sale structure is hammered out early, in the Letter of Intent . 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.
We think you may find these additional resources to be of interest.
If starting a custom clothing and accessories business is on your agenda, these guides will help you get started:
If you consider custom clothing and accessories businesses to be sales prospects, this isn't the best resource for you on our site. These helpful guides are more appropriate for you:
If you are looking for exit plan advice for a different kind of business, try our directory of exit planning guides below.