Sell a Business Tips
Selling a Surfboard Rental Business
The decision to sell your surfboard rental business isn't something that should be taken lightly, especially these days. If a business exit is on the horizon, you'll want to check out our suggestions for staying ahead of the market.
In any economy, there is a right way and a wrong way to sell a business.
Many surfboard rental business sellers sell for a price that is well below market value. That's unfortunate because all it takes to get a fair price in today's market is ample planning and an awareness of what's important to buyers.
Timing the Market
Now may be the best time to sell a surfboard rental business. A depressed economy means lower interest rates; lower interest rates increase the number of investors willing to take a chance on surfboard rental businesses. As the interest rates rise, it will be more difficult for buyers to make the numbers work in their favor. So we see market timing as a concern that can be easily mitigated by applying fundamental sales strategies and adequately preparing your company for buyers.
Sellers aren't the only ones who can make concessions in a business sale. In many instances, sellers can request buyer concessions. Although this scenario frequently plays out around seller financed deals, it's possible to push for a higher sales price or other form of compensation if you agree to mentor the buyer for a specified period of time. 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.
Should I Hire a Business Broker?
When selling a surfboard rental business, you have two choices: Hire a broker to facilitate the sale or perform the sale unassisted. Business brokers typically charge a 10% "success fee" when they sell a business, but they also handle many of the hassles that are associated with selling a surfboard rental business. You can also expect to receive a higher sales price for your business in a broker-assisted deal.
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