August 11, 2020  
 
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Selling a Record Label

Is the economy still a little shaky for a business sale? Sure it is. Yet record labels haven't heard the news and are reporting steady action on the business-for-sale market.

Personal and professional concerns surround the sale of a record label. In addition to the personal enjoyment you received from the business, you probably have concerns about what will happen to the people who made your record label a success.
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Many business owners don't know that record labels are still a hot commodity, to the extent that sellers have properly prepared them for the marketplace.

Moving On

The decision to sell your record label can't be made without adequate consideration of what will happen after the sale. many sellers find themselves ill-equipped to handle life after their business and fail to understand that their future plans can influence the sale process. For example, seller financing can be an extremely valuable concession, especially in the current economy. But if you need all of the proceeds of the sale upfront, seller financing is off the table and you'll need to find a different way to make your record label attractive to buyers.

Selling a Record Label to an Employee

There are both benefits and drawbacks to selling a record label to an employee. There are some perks to selling the business in-house. 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. Most of the time, employees also expect owners to finance a large portion of the sale. So if you aren't willing to finance the sale or need to get top dollar for your record label, a sale to an employee is probably not a possibility.

Maximizing Sales Price

There are no simple ways to sell a record label. If you don't know what you're doing, your business could languish on the market for months or even years. Many sellers find that hiring a business broker makes the demands of a sale much more tolerable. If you try to sell your business without a broker, your time will be consumed by the details of the sale. Subsequently, you'll be distracted from the demands of your auto supply store, business will suffer, and the sale price you receive for your company will be dramatically reduced. For a lot reasons, a decision to hire a broker is almost always the right decision, especially for sellers who need to receive top dollar for their record labels.

More Info on Business Transitions and Related Articles

Given your interest in exit planning and in record labels, you might find these additional resources to be of interest.

Marketing a Record Label

Role of Location In Selling a Business

How to Sell a Business

Five Tips for Maximizing Your Business Sale Price


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What challenges have you experienced in selling a record label or are you just getting started? If you have questions or advice to share, we'd love to hear from you!


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