Exit Planning Tips
Selling a Hay Rides and Sleigh Rides Business
Few entrepreneurs relish the idea of selling a business in a struggling economy. Yet hay rides and sleigh rides businesses continue to be sold at a brisk pace, outperforming the sales of many other types of businesses.
In a down economy, many hay rides and sleigh rides business sellers wait to list their businesses until they see signs that the economy has rebounded, making it difficult to accurately evaluate the number of hay rides and sleigh rides businesses that are actually for sale.
Eventually, it will the time will come to exit your business. When that happens, your future plans will be dependent on your ability to receive the highest possible sale price for your hay rides and sleigh rides business.
Should I Hire a Business Broker?
When selling a hay rides and sleigh rides business, you have two choices: Hire a broker to facilitate the sale or perform the sale unassisted. Although brokerage fees can be substantial, the right broker can reduce the amount of time your hay rides and sleigh rides business sits on the market. You can also expect to receive a higher sales price for your business in a broker-assisted deal.
Sellers aren't the only ones who can make concessions in a business sale. In many instances, sellers can request buyer concessions. For example, if the buyer needs seller financing, you can leverage a five-year loan to push for a higher sales price. Although you won't see all of the proceeds upfront, you'll earn interest on the balance and realize a higher price than you would in an all cash deal. Like seller concessions, buyer concessions should be addressed during negotiations, before the preparation of a Letter of Intent.
How to Identify Prospective Buyers
Many sellers don't realize how many prospective buyers there are for their businesses. We frequently see qualified buyers emerge from the seller's network of business and personal acquaintances. In other cases, sellers take a proactive approach to finding likely buyers and contacting them directly. Competitors may seem like natural prospects and they are. The downside is that they won't pay top dollar and will probably absorb your company into their own.
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