The business-for-sale market is just as frustrating for buyers as it is for sellers these days. Capital is scarce and many buyers simply can't afford the entry requirements for a restaurant and hotel fixtures business.
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At Gaebler, we're seeing restaurant and hotel fixtures business sellers succeed by applying sound sales principles combined with a refusal to be intimidated by a down economy.
Tips for Seller Financing
Business buyers are in a capital crunch. Banks and other lending institutions aren't eager to lend to unproven and undercapitalized restaurant and hotel fixtures business buyers regardless of the business's potential. Rather than abandon their plans entirely, many buyers are pursuing finance concessions from sellers. It's common for sellers to finance as much as 70% of the purchase price with a payoff period of four or five years, sometimes in the form of a balloon payment at the end of the repayment period.
Laying the Groundwork
Effective restaurant and hotel fixtures business preparation focuses on communicating value to prospective buyers. Professional business brokers understand buyers and know how to properly communicate a restaurant and hotel fixtures business to the marketplace. Specifically, brokers can advise you about the preparation of financial statements and other documents buyers expect to see in a premium restaurant and hotel fixtures business opportunity.
Handling Unexpected Outcomes
Every business seller dreams of a fast sale and a fat payday. However, no one told the marketplace about your expectations. The outcome of your sale will be determined by market forces - not by your personal circumstances or desires. Surprises are inevitable, so to minimize the disappointment you will need to prioritize the outcomes you require from the sale. If price is the most important outcome, you may need to agree to seller financing or other concessions. If a fast sale is the highest priority, you may need to lower the asking price to quickly capture the attention of the marketplace.
Given your interest in exit planning and in restaurant and hotel fixtures businesses, you might find these additional resources to be of interest.
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