January 27, 2021  
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Selling a Company


Selling a Retail Nurseries Business

Few entrepreneurs relish the idea of selling a business in a struggling economy. Yet retail nurseries businesses continue to be sold at a brisk pace, outperforming the sales of many other types of businesses.

In a down economy, many retail nurseries business sellers wait to list their businesses until they see signs that the economy has rebounded, making it difficult to accurately evaluate the number of retail nurseries businesses that are actually for sale.
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If your exit strategy involves selling a retail nurseries business these days, sellers need to make a strong case for buyers to purchase at or near the asking price.

Economic Considerations

When you sell a retail nurseries business, there are a number of variables you need to consider. Interest rates, spending, inflation, and other variables directly influence how long your retail nurseries 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. In our experience, the most important factors in the sale of a retail nurseries business have little to do with the economy.

Brokerage Benefits

There are many reasons why hiring a broker makes sense in retail nurseries business sales. Right out of the gate, brokers know how to help their clients properly prepare their businesses for a sale. More importantly, brokers have the ability to identify serious buyers and maintain confidentiality throughout the sale process. Typical brokerage rates (a.k.a. success fees) run 10% of the final price - an expense that is usually recouped through a higher sales price and less time on the market.

Negotiation 101

It's critical to negotiate from a position of strength. In a retail nurseries business sale, knowledge is power -- the more you know about your business and prospective buyers, the easier it is to sway negotiations in your favor. But before you can negotiate effectively, you need to have a clear sense of your minimum sale requirements. If you lack clarity about your goals, you're guaranteed to fall short of achieving of them. Consult with a broker, advisor, or negotiation team to clarify your expectations and devise a negotiation strategy.

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What challenges have you experienced in selling a retail nurseries business 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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