Smart Exit Planning Strategies for Niche Markets
Selling a Gloves Retail Business
A lot can go wrong during the sale of a gloves retail business these days. 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.
Waiting for better economic times to sell your company? That's a common anthem in the small business community.
Most gloves retail businesses are good business opportunities, a fact that is not going unnoticed by today's discerning buyers.
Sale Preparation Timeframes
There are no effective shortcuts for selling a gloves retail business. Since buyers prefer to see evidence of future cash flow, you'll want to to strategically lock in cash flows and increase profits before you list the business. Next, the business will need to be documented in professional financial statements and manuals that facilitate the ownership transition. Since all of this takes time and effort, a gloves retail business can rarely be ready for the marketplace in less than six months. However, to command the highest price, you'll probably need to spend one to two years preparing and positioning your business for buyers.
Pros & Cons of a Sale to an Employee
Employee sales have pros and cons. A faithful employee may have the motivation and ability to continue to operate the business. If you need to sell quickly, the timeframe is condensed in an employee sale because you don't need to track down a buyer. 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 gloves retail business sale, as long as you are willing to vet the employee's credit worthiness the same as any other buyer.
Benefits of Third-Party Assistance
At some point, you're going to need help selling your gloves retail business. The enlistment of a qualified business broker is an excellent first step. We also suggest hiring an attorney, an appraiser, and an accountant early in the process. In most cases, your sale strategy will call for the assistance of outside professionals at various stages throughout the process. Early recruitment makes it easier to execute your strategy without unnecessary interruptions.
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