Exit Planning Strategies

Selling a Video Gambling Machines Business

Few entrepreneurs relish the idea of selling a business in a struggling economy. Yet video gambling machines businesses continue to be sold at a brisk pace, outperforming the sales of many other types of businesses.

Waiting for better economic times to sell your company? That's a common anthem in the small business community.

The economy hasn't squashed the market for video gambling machines businesses. Not surprisingly, buyers expect to receive value for their dollars - and that means sellers need to demonstrate that their businesses are capable of delivering anticipated returns.

Why Confidentiality Matters

In the business-for-sale universe, publicity translates into risk. A low-key selling strategy is a low risk activity because you can control who does (and doesn't) know that your business is on the market. When and if your sale becomes public knowledge, competitors can use that information to weaken your position in the marketplace. Maintaining confidentiality isn't easy, but without it you won't get top dollar for your business. In a worse case scenario, a profitable video gambling machines business can be reduced to one that is struggling to survive. Brokers and consultants can mitigate the risk by implementing confidential sale techniques.

Timing the Market

Now may be the best time to sell a video gambling machines business. A depressed economy means lower interest rates; lower interest rates increase the number of investors willing to take a chance on video gambling machines businesses. As the interest rates rise, it will be more difficult for buyers to make the numbers work in their favor. Market conditions can be intimidating. But your larger concern should be whether or not your business is ready to be presented to qualified sale prospects.

Signs You're in Over Your Head

Many video gambling machines business are tempted to save brokerage fees by selling their businesses on their own. But for every successful unassisted sale, several other video gambling machines 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.

Share this article


Additional Resources for Entrepreneurs

Lists of Venture Capital and Private Equity Firms

Franchise Opportunities

Contributors

Business Glossary