Exit Planning Tips
Selling a Horticultural Plants Business
Is the economy still a little shaky for a business sale? Sure it is. Yet horticultural plants businesses haven't been deterred. In fact, we think this economy is a ripe environment for a horticultural plants business sale.
Economic data is scary stuff for small business owners. But quarterly data dumps don't impact horticultural plants business sales nearly as much as sale strategy.
There is no simple way to sell a business. But the most prepared horticultural plants business sellers are achieving fair market value and more for their companies through persistence and the application of sound selling techniques.
Identifying Serious Buyers
Many prospective buyers will have a strong desire to acquire your horticultural plants business. The bad news is that they will lack the financial capacity to close the deal. As a seller, it's important to separate the tire kickers from the serious buyers as soon as possible. Each tire kicker is an investment of time and energy that could be poured into finding a more qualified prospect. Your business broker can offer insights about how to quickly spot tire kickers. As a rule, they limit the amount of information that is provided in the initial stages of an engagement, waiting to reveal the juiciest details of the business until the prospect has been thoroughly vetted. Smart sellers may require prospects to provide background and financial information fairly early in the process as a way of verifying the financial capacity to close the deal.
Sale Preparation Timeframes
There are no effective shortcuts for selling a horticultural plants 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 horticultural plants business can rarely be ready for the marketplace in less than six months. A more likely scenario is that it will take more than a year to create the conditions necessary to receive the maximum sale price.
Selecting a Broker
A good business broker is your best bet for a fast and profitable business sale. No two horticultural plants business sales are alike. That means you'll want to look for a broker who has been around the block and possesses substantial experience selling businesses in the industry. The best brokers should also come with a list of references, a demonstrable track record and a proven plan for selling horticultural plants businesses.
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