Advice on Niche Market Exit Planning
Selling a Tennis Courts Business
A lot can go wrong during the sale of a tennis courts business these days. We'll tell you how to keep your sale and your future plans on track.
We're seeing a high volume of shadow inventory in the business-for-sale market.
The business-for-sale market is extremely dynamic. Knowledgeable entrepreneurs understand that market timing isn't nearly as important as other factors in a tennis courts business sale. To improve sale outcomes, you will simply need to tailor your tennis courts business to today's buyers.
So you've decided to sell your tennis courts business. That's great -- but have you considered what's next? Are you moving on to another business venture? Are you retiring? many sellers find themselves ill-equipped to handle life after their business and fail to understand that their future plans can influence the sale process. In today's market, many buyers expect seller financing - a concession that might not be a possibility for sellers whose next step requires the entire proceeds at the time of the sale.
A good broker can offer several benefits to business sellers. 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.
It's becoming more difficult to sell a tennis courts business without considering seller concessions. By far, seller financing is the most sought-after concession, especially in the current economic environment. With entrepreneurs struggling to secure capital, you may be the buyer's only source of financing. As an alternative, clearly state that seller financing is not an option and consider offering other concessions to see the sale through to its completion.
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