Business Exit Planning
Selling a Mini and Self Storage Business
We hear from a lot of business owners who are timid about listing their mini and self storage business. Despite the mood of the market, we think there are still opportunities to receive a good price for your mini and self storage business. Here's what you need to know . . .
You need to get a good price for your mini and self storage business. To get there, you'll need to set realistic expectations and follow a deliberate selling strategy.
You'll always have an excuse for not putting your business on the market. With hard work and dedication, your mini and self storage business can be sold at or above fair market value right now.
Current Market Conditions
No one plans to sell a mini and self storage business in a down economy. Although the economy is gaining steam, recovery is slow and entrepreneurs are holding their cards close to their vests. However, many business sellers don't realize that a full economic rebound can have devastating consequences, particularly if sellers who have waited to list their businesses suddenly create a glut in the business-for-sale marketplace. Like it or not, the time to sell your mini and self storage business may be right now, as long as your willing to adequately prepare your business for the marketplace.
Legal Concerns
We run into a lot of mini and self storage business sellers who intend to wait until the final contract to negotiate details. Big mistake. With few exceptions, sale structure is hammered out early, in the Letter of Intent . If you are seeking buyer concessions, the time to address them is before the Letter of Intent is drafted. For sellers, that makes a close review of the Letter of Intent more than a formality - it's a critical juncture on the path to closing.
Leveraging Seller Concessions
In the current marketplace, seller concessions can make the difference between a business sale and a mini and self storage business that languishes on the market for months or even years. By far, seller financing is the most sought-after concession, especially in the current economic environment. Capital is scarce, causing new entrepreneurs to rely on sellers to finance at least part of the purchase price. As an alternative, clearly state that seller financing is not an option and consider offering other concessions to see the sale through to its completion.
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