You survived all the ups and downs of owning a business. Next, you'll need to prepare yourself to address the rigors of selling a shelters business.
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Yet what many sellers don't appreciate is that a down economy can present the perfect opportunity to sell a shelters business.
Benefits of Third-Party Assistance
Rarely, if ever, do owners sell a shelters business without outside assistance. The enlistment of a qualified business broker is an excellent first step. Other early hires include the professionals you will need to valuate the business, prepare financial statements and navigate legal considerations. The benefit of soliciting outside assistance early is that seemingly small decisions now can have big consequences later. By consulting professionals throughout the sale of your shelters business, you can avoid painful tax and legal complications both before and after closing.
Sale Preparation Timeframes
There are no effective shortcuts for selling a shelters business. Since buyers prefer to see evidence of future cash flow, you'll want to to strategically lock in cash flows and increase profits before you list the business. Next, the business will need to be documented in professional financial statements and manuals that facilitate the ownership transition. Unless you have already started planning for your shelters business sale, it's going to take at least six months to prepare your business. A more likely scenario is that it will take more than a year to create the conditions necessary to receive the maximum sale price.
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. For example, if the buyer needs seller financing, you can leverage a five-year loan to push for a higher sales price. Although you won't see all of the proceeds upfront, you'll earn interest on the balance and realize a higher price than you would in an all cash deal. Asset exclusions, retained ownership shares and long-term contracts with another of the seller's companies can also be leveraged to extract concessions from buyers.
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