Sell a Business Tips
Selling a Specialty Warehousing and Storage Business
You've learned a lot during your tenure as a specialty warehousing and storage business owner. Before you walk away, you have one more challenge to overcome: A successful and profitable business sale.
When it comes to selling a specialty warehousing and storage business, there are no shortcuts to success.
Market timing is a constantly moving target. That's why we think it's important for specialty warehousing and storage business owners to know that it's possible to sell a business in any economy. To improve sale outcomes, you will simply need to tailor your specialty warehousing and storage business to today's buyers.
Preparing Your Specialty Warehousing & Storage Business for Sale
Like it or not, a good business sale takes time. Profitable specialty warehousing and storage business sales opportunities leverage a long-term strategy to increase the value of the business to buyers. Even though it may take years to adequately position your specialty warehousing and storage business, the amount of preparation you perform will have direct correlation on asking and sale prices. But your efforts to improve your company's position and profitability will only be effective if you invest similar effort into the preparation of accurate financial statements for buyers.
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. Like seller concessions, buyer concessions should be addressed during negotiations, before the preparation of a Letter of Intent.
Sale Costs
In a specialty warehousing and storage business sale, pricing is based on a number of factors, including the costs incurred during the sale. Good brokerage takes a 10% success fee off the top of the final sale price. Professional consultations can also represent a significant expense during the course of a specialty warehousing and storage business sale. Likewise, you'll need to consider how much it will cost to promote the sale as well as the lost time it will take for you and your team to navigate the sale process.
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