Optimizing Business Exits
Selling a Recycled Paper and Cardboard Business
Planning and execution can dramatically influence the price you receive for your recycled paper and cardboard business.
Business buyers are a timid lot, even more so now that they are facing an uncertain economic landscape.
Yet everyday, hundreds of listed recycled paper and cardboard businesses manage to pique the interest of qualified buyers. They do it by paying attention to the details that other business sellers overlook.
Turning the Tables: Buyer Concessions
Sellers aren't the only ones who can make concessions in a business sale. In many instances, sellers can request buyer concessions. Although this scenario frequently plays out around seller financed deals, it's possible to push for a higher sales price or other form of compensation if you agree to mentor the buyer for a specified period of time. You can also choose to exclude certain items like equipment or inventory from the deal if the buyer isn't willing to meet your price expectations. By selling excluded assets on the secondary market, you can compensate for an anemic sale price.
Signs You're in Over Your Head
Many recycled paper and cardboard 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. Likewise, if buyers seem to express interest but quickly exit when you quote the asking price, it's a sign that your recycled paper and cardboard business is priced out of the market. The remedy is professional brokerage or a consultation with more experienced sellers.
Factoring In Economic Variables
Several economic factors can affect the sale of a recycled paper and cardboard business. Interest rates, spending, inflation, and other variables directly influence how long your recycled paper and cardboard business will be on the market as well as its sales price. The truth is that perfect market conditions may never materialize. A much better approach is to focus on the factors that always attract buyers and investors. One thing is for sure - buyers are paying more attention to your company's profitability and growth potential than they are to the latest quarterly economic indicators.
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