Mastering Niche Market Exit Planning
Selling a Nails, Tacks, and Staples Business
Few entrepreneurs relish the idea of selling a business in a struggling economy. Yet nails, tacks, and staples businesses continue to be sold at a brisk pace, outperforming the sales of many other types of businesses.
The economy isn't the only thing that is uncertain these days. So are nails, tacks, and staples business buyers, many of whom are waiting to pull the trigger on their next acquisition.
If you're ready to move on, now is the right time to sell your nails, tacks, and staples business.
Legal Considerations
It's obvious that you're going to need to hire an attorney to finalize the sale of your nails, tacks, and staples 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. It's helpful to introduce your attorney to your broker to facilitate a smooth sale and a productive working relationship.
Average Preparation Time
There are no effective shortcuts for selling a nails, tacks, and staples 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. You'll also need to create financial reports, operations manuals, and other documents to create the perception of a turnkey nails, tacks, and staples business operation. Unless you have already started planning for your nails, tacks, and staples business sale, it's going to take at least six months to prepare your business. A more likely scenario is that it will take more than a year to create the conditions necessary to receive the maximum sale price.
Dealing with Buyers
Business sellers sometimes struggle to maintain a positive attitude when dealing with buyers. The questions nails, tacks, and staples business ask during due diligence are designed to alleviate their concerns about the business and should be promptly addressed by the seller. Avoid answering buyer concerns with vague generalities. Instead, be as specific as possible, even if it means doing additional research before offering a response. However, at some point due diligence has to end and the sale must proceed to closing. Consult with your broker to determine when it's time to draw the line and push the buyer toward a final commitment.
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