Business Exit Planning
Selling a Mezzanines and Platforms Equipment and Systems Business
Unfortunately, many sellers are waiting to list their mezzanines and platforms equipment and systems businesses until the economy fully rebounds. We think that's a mistake because for the right buyers, mezzanines and platforms equipment and systems businesses are a great investment.
A business exit is always a trying experience. But when you need to sell your mezzanines and platforms equipment and systems business in a depressed economy, the challenges can seem insurmountable.
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 mezzanines and platforms equipment and systems business.
In a mezzanines and platforms equipment and systems business sale, pricing is based on a number of factors, including the costs incurred during the sale. Hiring a broker is a mixed bag because although brokers can increase the sale price, they also take a 10% fee. Professional consultations can also represent a significant expense during the course of a mezzanines and platforms equipment and systems business sale. Furthermore, your time has value, so you may need to include a personal compensation consideration in your expense estimates.
What About Market Conditions?
Today's mezzanines and platforms equipment and systems business sellers face an intimidating economic landscape. Although the economy is gaining steam, recovery is slow and entrepreneurs are holding their cards close to their vests. Despite the risks, sellers need to be cognizant of the fact that there is a large volume of mezzanines and platforms equipment and systems businesses waiting to be listed until the economy rebounds. When that happens, the buyers' market will become even stronger and have a negative impact on prices. So what's our point? The economy isn't the most important factor in the sale of your business. Instead, you should be focusing on making your mezzanines and platforms equipment and systems business as attractive as possible so to buyers right now.
Seller concessions are becoming more commonplace in business-for-sale transactions. In a down economy sellers become bankers; an unwillingness to finance at least part of the sale of a mezzanines and platforms equipment and systems business can translate into a dead deal. Traditional lenders and investors are gun shy - and that makes sellers a logical funding source for many buyers. If you are unwilling or unable to offer financing, be prepared to offer other types of concessions to close the deal.
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