Exit Planning Tips
Selling a Hardwood Business
You've learned a lot during your tenure as a hardwood business owner. Before you walk away, you have one more challenge to overcome: A successful and profitable business sale.
A business exit is always a trying experience. But when you need to sell your hardwood business in a depressed economy, the challenges can seem insurmountable.
Eventually, it will the time will come to exit your business. As a consequence, you have a substantial stake in knowing how to receive maximum price for your hardwood business.
Negotiation Teams
It's not unusual for hardwood business sellers to feel overwhelmed when they negotiate the sale of their business. Negotiation is a chess game, best played with the resources and backend support of a negotiation team. By enlisting the assistance of a negotiation team (senior leaders, experienced negotiators, etc.), you can improve the quality of your negotiation strategy and position yourself to receive top dollar for your hardwood business.
Sale Costs
You'll need to incorporate the cost of the sale into the calculation the minimum price you are willing to receive for your hardwood business. Good brokerage takes a 10% success fee off the top of the final sale price. Professional consultations can also represent a significant expense during the course of a hardwood business sale. Furthermore, your time has value, so you may need to include a personal compensation consideration in your expense estimates.
Economic Considerations
Several economic factors can affect the sale of a hardwood business. Interest rates, spending, inflation, and other variables directly influence how long your hardwood business will be on the market as well as its sales price. The truth is that perfect market conditions may never materialize. Rather than watching the economy, we recommend watching buyers and tailoring your business to meet their investment expectations. In our experience, the most important factors in the sale of a hardwood business have little to do with the economy.
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