Optimizing Business Exits
Selling a Rubber and Plastic Hose and Tubing Business
Few entrepreneurs relish the idea of selling a business in a struggling economy. Yet rubber and plastic hose and tubing businesses continue to be sold at a brisk pace, outperforming the sales of many other types of businesses.
Like it or not, a rubber and plastic hose and tubing business sale is a complicated affair, made even more difficult by the emotions associated with leaving a business you've poured your life into. But have you considered how your customers, vendors and employees will handle the sale?
If your exit strategy involves selling a rubber and plastic hose and tubing business now, sellers need to make a strong case for buyers to purchase at or near the asking price.
Family Business Sale Tips
The idea of passing a business along to a family member sounds idyllic to many business owners. in reality, a family-based rubber and plastic hose and tubing business sale can be more complicated than selling to a stranger. Often, a sale to a family member creates fractures within the family. Whether you offer the family member special concessions or not, either the buyer or other family members may take offense. The best advice: if a family sale is a possibility, it needs to be handled objectively, with ample input from third-party advisors.
Signs You're in Over Your Head
Many rubber and plastic hose and tubing business are tempted to save brokerage fees by selling their businesses on their own. But for every successful unassisted sale, several other rubber and plastic hose and tubing businesses sell below market value or languish on the market for years without attracting the interest of qualified buyers. 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. Lack of buyer enthusiasm or persistence indicates that something is wrong. The remedy is professional brokerage or a consultation with more experienced sellers.
Current Market Conditions
No one plans to sell a rubber and plastic hose and tubing business in a down economy. So far, government intervention and promises that the economy is slowly recovering haven't been enough to alleviate many entrepreneur's fears. Despite the risks, sellers need to be cognizant of the fact that there is a large volume of rubber and plastic hose and tubing businesses waiting to be listed until the economy rebounds. When that happens, the buyers' market will become even stronger and have a negative impact on prices. Like it or not, the time to sell your rubber and plastic hose and tubing business may be right now, as long as your willing to adequately prepare your business for the marketplace.
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