Niche Exit Planning Strategies
Selling a Drawing Materials and Supplies Business
There is a lot of confusion about the best way to sell a drawing materials and supplies business in today's economy. More than ever before, it's important for sellers to know the tactics and techniques that are being used to maximize sales price and achieve desired sale outcomes.
Business sellers are notorious for second-guessing themselves about the right time to put their companies up for sale.
Many business owners don't know that drawing materials and supplies businesses are still a hot commodity, to the extent that sellers have properly prepared them for the marketplace.
When the Sale Goes Off-Course
Many drawing materials and supplies business are tempted to save brokerage fees by selling their businesses on their own. Although there are exceptions, solo sales typically take longer and are less productive than brokered sales. Generally, listed businesses should generate interest within a few months. When buyers fail to exhibit substantive interest, it could indicate unrealistic pricing or an inferior selling strategy. The remedy is professional brokerage or a consultation with more experienced sellers.
Buyer Concessions
Sellers aren't the only ones who can make concessions in a business sale. In many instances, sellers can request buyer concessions. Although this scenario frequently plays out around seller financed deals, it's possible to push for a higher sales price or other form of compensation if you agree to mentor the buyer for a specified period of time. Like seller concessions, buyer concessions should be addressed during negotiations, before the preparation of a Letter of Intent.
Realistic Expectations
Objectivity is a rare commodity in a business sale. You have invested yourself in making your drawing materials and supplies business the success it is today, but in the eyes of prospective buyers, your operation is only worth fair market value. It is difficult for many owners to accept the cold, hard facts about their company's worth, but objectivity is the name of the game in a successful drawing materials and supplies business sale. A business broker can be a valuable resource in right-sizing your expectations and preparing you for market realities.
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