Smart Exit Planning Strategies for Niche Markets

Selling a Greenhouses Business

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

Economic data is scary stuff for small business owners. But quarterly data dumps don't impact greenhouses business sales nearly as much as sale strategy.

In order to market a greenhouses business in this environment, business sellers may need to apply a combination of incentives and techniques.

Working with Accountants

Accountants lay the financial groundwork for a business sale. Most greenhouses business have significant tax consequences requiring the input of a qualified accountant. Brokers often advise their clients to have an accountant perform an audit of the business prior to sale. With seller financing becoming common, professional accountants are playing a more central role in negotiations and buyer qualification.

Average Preparation Time

Preparing a greenhouses business sale takes time. 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 greenhouses 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.

Seller Financing

Capital is hard to come by these days. Banks and other lending institutions aren't eager to lend to unproven and undercapitalized greenhouses business buyers regardless of the business's potential. Rather than abandon their plans entirely, many buyers are pursuing finance concessions from sellers. Although 100% seller financing isn't recommended, sellers are financing up to 70% of the sale price to close deals.

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