Niche Exit Planning Strategies
Selling a Dance Hall
You've learned a lot during your tenure as a dance hall owner. The next step is to position your business for the demands of the business-for-sale marketplace.
Like it or not, a dance hall 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 dance hall a success.
The economy hasn't squashed the market for dance halls. Like always, unprofitable and poorly positioned businesses struggle to find buyers while sellers who have invested time and effort to prepare their sale are being rewarded in the marketplace.
Sweetening the Deal
Like it or not, prospective buyers are going to ask you to make certain concessions in the sale of your dance hall. Although a lower asking price is the ultimate seller concession, a price reduction isn't the only way to attract serious buyers. 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 dance hall owner, they can be critical launching points for their ownership journey.
Preparing Family Members
Many sellers embarked on their dance hall sale without adequately considering the impact it will have on their families. In many cases, we find that even though business owners are equipped to handle their ownership exit, their family members are having a hard time letting go of the business, especially if family life has revolved around the demands of the dance hall. As a seller, you need to be sensitive to your family's feelings about the sale and make an effort to keep them informed about the process. Subsequently, selling a dance hall has to include ample communication and shared decision-making.
In a dance hall 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. So after consulting with your broker and attorney, make sure you're comfortable with the terms of the Letter of Intent. If not, everything you do to close the sale of your dance hall may be a waste of time.
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