The economy isn't the only thing that is uncertain these days. So are visual arts business buyers, many of whom are waiting to pull the trigger on their next acquisition.
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Yet everyday, hundreds of listed visual arts businesses manage to pique the interest of qualified buyers. They do it by paying attention to the details that other business sellers overlook.
Broker vs. No Broker
When selling a visual arts business, you have two choices: Hire a broker to facilitate the sale or perform the sale unassisted. Is there a cost associated with hiring a broker? Sure - about 10% of the final sale prices. But a good broker will make selling your visual arts business much less painful. You can also expect to receive a higher sales price for your business in a broker-assisted deal.
For most owners, the hardest part of selling a visual arts business is remaining objective. You have invested yourself in making your visual arts business the success it is today, but in the eyes of prospective buyers, your operation is only worth fair market value. It is difficult for many owners to accept the cold, hard facts about their company's worth, but objectivity is the name of the game in a successful visual arts business sale. A business broker can be a valuable resource in right-sizing your expectations and preparing you for market realities.
As a business seller, you have to be at the top of your negotiating game. More often than not, the person with the most knowledge will come out on top in a visual arts business negotiation. But great negotiation begins with knowing yourself. What is the realistic price range for your visual arts business? What is the minimum amount you're willing to settle on? Are you willing to offer seller financing or other concessions to close the deal? If you can't answer these questions, you're simply not ready to sit down at the negotiation table yet. If you aren't sure what you need, put negotiations on hold until you gain a clearer understanding of your own deal parameters.
Given your interest in exit planning and in visual arts businesses, you might find these additional resources to be of interest.
If you plan on opening a visual arts business, these guides will help you get started:
If you consider visual arts businesses to be sales prospects, there's more applicable information for you elsewhere on our site. These helpful guides are more appropriate for you:
If you are looking for exit plan advice for a different kind of business, please browse our alphabetical directory of exit planning guides below.