Niche Exit Planning Strategies

Selling a Donut Equipment and Supplies Business

We hear from a lot of business owners who are timid about listing their donut equipment and supplies business. Despite the mood of the market, we think there are still opportunities to receive a good price for your donut equipment and supplies business. Here's what you need to know . . .

The donut equipment and supplies business-for-sale marketplace is a nuanced environment, full of pitfalls for sellers who aren't prepared for its demands.

Despite the conventional wisdom, we believe current economic conditions are right for selling a donut equipment and supplies business. We'll tell you what you need to know to achieve a successful sale outcome

Legal Concerns

In a donut equipment and supplies 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.

Selling a Donut Equipment & Supplies Business to an Employee

Employee sales have pros and cons. A faithful employee may have the motivation and ability to continue to operate the business. The time and expense of locating the right buyer will be nonexistent and you won't have to spend weeks showing the buyer every square inch of the company. Yet most employees lack the means to buy their employer's business at or near the asking price. Seller financing is one way to get around the capital deficit of an employee-based donut equipment and supplies business sale, as long as you are willing to vet the employee's credit worthiness the same as any other buyer.

Understanding Market Timing

Now may be the best time to sell a donut equipment and supplies business. Although the economy is generally struggling, low interest rates make donut equipment and supplies businesses more attractive to entrepreneurs who want to get in the game. As the interest rates rise, it will be more difficult for buyers to make the numbers work in their favor. 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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