The economy isn't the only thing that is uncertain these days. So are manufacturer of saddlery and harness buyers, many of whom are waiting to pull the trigger on their next acquisition.
(article continues below)
The economy hasn't squashed the market for manufacturer of saddlery and harness. Like always, unprofitable and poorly positioned businesses struggle to find buyers while sellers who have invested time and effort to prepare their sale are being rewarded in the marketplace.
The calculation of your asking price should include a buffer to cover the expense of the sale process. Hiring a broker is a mixed bag because although brokers can increase the sale price, they also take a 10% fee. Depending on your circumstances, you may also incur substantial expenses in hiring legal, appraisal and accounting professionals. Likewise, you'll need to consider how much it will cost to promote the sale as well as the lost time it will take for you and your team to navigate the sale process.
Leveraging Seller Concessions
Seller concessions are becoming more commonplace in business-for-sale transactions. By far, seller financing is the most sought-after concession, especially in the current economic environment. With entrepreneurs struggling to secure capital, you may be the buyer's only source of financing. If you are unwilling or unable to offer financing, be prepared to offer other types of concessions to close the deal.
Timing the Market
Now may be the best time to sell a manufacturer of saddlery and harness. Although the economy is generally struggling, low interest rates make manufacturer of saddlery and harness more attractive to entrepreneurs who want to get in the game. As the interest rates rise, it will be more difficult for buyers to make the numbers work in their favor. So we see market timing as a concern that can be easily mitigated by applying fundamental sales strategies and adequately preparing your company for buyers.
Given your interest in exit planning and in manufacturer of saddlery and harness, you might find these additional resources to be of interest.
If you plan on opening a manufacturer of saddlery and harness, these guides will help you get started:
If you want information on how to sell to manufacturer of saddlery and harness, this isn't the best resource for you on our site. These helpful guides are more appropriate for you:
If you are eager to get business succession tips for a different industry, please browse our directory of exit planning guides below.