It's a fact: Successful business sales take time.
(article continues below)
Many business owners don't know that golf communities businesses are still a hot commodity, to the extent that sellers have properly prepared them for the marketplace.
Broker vs. No Broker
The decision of whether or not to hire a business broker should never be taken lightly. Is there a cost associated with hiring a broker? Sure - about 10% of the final sale prices. But a good broker will make selling your golf communities business much less painful. You can also expect to receive a higher sales price for your business in a broker-assisted deal.
Seller concessions are becoming more commonplace in business-for-sale transactions. In a down economy sellers become bankers; an unwillingness to finance at least part of the sale of a golf communities business can translate into a dead deal. Capital is scarce, causing new entrepreneurs to rely on sellers to finance at least part of the purchase price. Other common seller concessions include staying on the mentor the new owner, non-compete clauses, and working as a consultant to mitigate the impact of new ownership.
Understanding Market Timing
Now may be the best time to sell a golf communities business. With interest rates at all-time lows, it's easy to see why golf communities businesses are an appealing investment opportunity for savvy investors. 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.
Given your interest in exit planning and in golf communities businesses, you might find these additional resources to be of interest.
If starting a golf communities business is on your agenda, these guides will help you get started:
If you consider golf communities businesses to be sales prospects, there's more applicable information for you elsewhere on our site. These helpful guides are more appropriate for you:
If you are eager to get business succession tips for a different industry, try our alphabetical directory of exit planning guides below.