These days, the prospect of selling a vinegar retail business is so daunting that many would-be sellers are biding their time, waiting for a break in the economic clouds.
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At Gaebler, we think waiting for the economy to rebound is a mistake for many business owners. Selling a vinegar retail business isn't easy, but we believe sellers can achieve their goals in any economic environment.
Selling to a Family Member
Selling a business to a family member might sound like the best of both worlds. You get an exit strategy, your vinegar retail business stays in the family, and everyone is happy. Yeah, right. Often, a sale to a family member creates fractures within the family. If you refuse to discount the sales price or offer other concessions, it could create a rift with the buyer. But if you give in to the buyer's demands, you risk alienating family members who may feel the buyer is receiving an early inheritance. Although it may seem odd, a sale to a family member can take longer than a sale to a stranger because it may take time to work through family issues prior to closing.
In a vinegar retail business sale, the Letter of Intent contains the vital elements of the deal between the buyer and the seller . If you are seeking buyer concessions, the time to address them is before the Letter of Intent is drafted. For sellers, that makes a close review of the Letter of Intent more than a formality - it's a critical juncture on the path to closing.
Average Preparation Time
There are no effective shortcuts for selling a vinegar retail 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. You'll also need to create financial reports, operations manuals, and other documents to create the perception of a turnkey vinegar retail business operation. Unless you have already started planning for your vinegar retail 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.
Given your interest in exit planning and in vinegar retail businesses, you might find these additional resources to be of interest.
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