Most business sellers are interested in disposing of their businesses as quickly as possible. But that's not how a leather findings and finishes business sale works.
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However, serious buyers also understand the value of a good leather findings and finishes business. So for leather findings and finishes business sellers, today's market is all about convincing buyers that the numbers make their companies worth the asking price.
It pays to invest in first-rate legal counsel when you sell a leather findings and finishes business. A good lawyer serves a variety of functions during the process. In addition to reviewing the letter of intent, sales contract, and other documents, your attorney should be capable of advising you about due diligence and the tax consequences of the sale. In some cases, an attorney may also provide assistance in securing long-term leases or vendor contracts to make your leather findings and finishes business more attractive to buyers. If you don't know an attorney with experience in the business-for-sale market, ask your broker for a referral.
Most leather findings and finishes business sellers realize they will need to offer concessions to sell their businesses. But for every concession you grant, there may be an opportunity to obtain a concession from the buyer. 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. Asset exclusions, retained ownership shares and long-term contracts with another of the seller's companies can also be leveraged to extract concessions from buyers.
Objectivity is a rare commodity in a business sale. You have invested yourself in making your leather findings and finishes business the success it is today, but in the eyes of prospective buyers, your operation is only worth fair market value. Although it may be a hard pill to swallow, you need to find a way to introduce objectivity into your sale. Many sellers create a negotiation team to minimize the effect of their personal emotions on negotiations. More importantly, this team can perform a reality check on your expectations for the sale.
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