Niche Exit Planning Strategies
Selling a Demonstration Service
We hear it all the time: 'This economy is a hostile environment for a business sale.' However, demonstration services haven't heard the news and are reporting steady action on the business-for-sale market.
In a down economy, many demonstration service sellers wait to list their businesses until they see signs that the economy has rebounded, making it difficult to accurately evaluate the number of demonstration services that are actually for sale.
If your exit strategy involves selling a demonstration service now, you need to apply the right combination of preparation, strategy and common sense.
Working with Accountants
Professional accountants lend credibility to the financial preparation of a demonstration service sale. From a seller perspective, an accountant can offer personal financial assistance, especially when it comes to handling the disposition of sale proceeds. A professional audit can ease buyer concerns and amp up the value of your financial presentation. With seller financing becoming common, professional accountants are playing a more central role in negotiations and buyer qualification.
Why Confidentiality Matters
Highly publicized demonstration service sales are risky demonstration servicesales. A low-key selling strategy is a low risk activity because you can control who does (and doesn't) know that your business is on the market. Eventually, word will leak out. When that happens, it can damage your standing with customers and vendors. Although it can be difficult, it's important to strike a balance between confidentiality and sale promotion. Brokers and consultants can mitigate the risk by implementing confidential sale techniques.
Understanding Market Timing
Worried about timing? Believe it or not, this could be an advantageous time to put a demonstration service up for sale. A depressed economy means lower interest rates; lower interest rates increase the number of investors willing to take a chance on demonstration services. Sooner or later, rates will rise, increasing the risk for prospective buyers of demonstration services. So we see market timing as a concern that can be easily mitigated by applying fundamental sales strategies and adequately preparing your company for buyers.
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