January 25, 2021  
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Selling a Company


Selling a Plants Wholesale Business

We hear it all the time: "This economy is a hostile environment for a business sale." However, plants wholesale businesses haven't heard the news and are reporting steady action on the business-for-sale market.

Business sellers sometimes face a long, hard struggle to get fair market value for their companies. But with the adequate preparation, your plants wholesale business can attract buyers who recognize its potential.
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In order to market a plants wholesale business now, sellers need to make a strong case for buyers to purchase at or near the asking price.

Understanding Market Timing

Worried about timing? Believe it or not, this could be an advantageous time to put a plants wholesale business up for sale. A depressed economy means lower interest rates; lower interest rates increase the number of investors willing to take a chance on plants wholesale businesses. As the interest rates rise, it will be more difficult for buyers to make the numbers work in their favor. Market conditions can be intimidating. But your larger concern should be whether or not your business is ready to be presented to qualified sale prospects.

Equipment and Inventory Concerns

It's incumbent on buyers to commission their own appraisal of your plants wholesale business's physical assets. Your appraisal should occur before you put your business on the market. A pre-sale appraisal is a prerequisite for because it offers insights about your assets' market value before you initiate conversations with prospective buyers. A pre-listing appraisal also gives you the opportunity to document the condition of your plants wholesale business's assets and possible even make repairs or upgrades to increase the total value of the operation.

Sale Costs

In a plants wholesale 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 plants wholesale business sale. Furthermore, your time has value, so you may need to include a personal compensation consideration in your expense estimates.

More Exit Planning Articles

Given your interest in exit planning and in plants wholesale businesses, you might find these additional resources to be of interest.

Marketing a Plants Wholesale Business

Selling to Competitors

Family Business Exit Plans

Renewing Leases Prior to Selling a Business

Conversation Board

Want to continue the discussion about how to sell a plants wholesale business? If you have firsthand knowledge about exit planning issues and challenges, we invite you to submit your comments. Questions are also encouraged!

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