Mastering Niche Market Exit Planning
Selling a Nickel Business
Does the economy have you down? For exiting owners, the idea of listing their company now can be terrifying. Fortunately, a nickel business sale isn't as scary as it seems.
The economy isn't the only thing that is uncertain these days. So are nickel business buyers, many of whom are waiting to pull the trigger on their next acquisition.
However, serious buyers also understand the value of a good nickel business. So for nickel business sellers, today's market is all about convincing buyers that the numbers make their companies worth the asking price.
When the Sale Goes Off-Course
Many nickel business are tempted to save brokerage fees by selling their businesses on their own. Although there are exceptions, solo sales typically take longer and are less productive than brokered sales. As a rule, no business should sit on the market for more than six months without attracting the interest of at least a handful of qualified buyers. Lack of buyer enthusiasm or persistence indicates that something is wrong. If that occurs, it's time to bring in the professionals to get your sale back on track.
Selling a Nickel Business to an Employee
Although it may seem easier to sell your nickel business to an employee, this approach also has some pitfalls. A key employee may seem like a natural sales prospect. If you need to sell quickly, the timeframe is condensed in an employee sale because you don't need to track down a buyer. Yet most employees lack the means to buy their employer's business at or near the asking price. Seller financing is one way to get around the capital deficit of an employee-based nickel business sale, as long as you are willing to vet the employee's credit worthiness the same as any other buyer.
When Is the Right Time to Sell?
Most business owners know when it's time to exit their company. Opinions are mixed and some consultants are advising nickel business owners to wait for a better economy to put their business on the market. We aren't nearly as pessimistic about the nickel business marketplace. The inventory of what we consider to be quality nickel businesses is actually low right now and there is room for the right sellers to realize substantial gains with investment-conscious buyers.
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