Niche Exit Planning Tactics
Selling a Wedding Gifts and Favors Business
Most businesses are susceptible to economic conditions and wedding gifts and favors businesses are no exception. But in some cases, a down economy can actually improve saleability. Now all you have to do is convince the right buyer that your business is built for long-term success.
We hear it all the time: "I'm waiting until the economy recovers to list my business."
At Gaebler, we're seeing wedding gifts and favors business sellers succeed by applying sound sales principles combined with a refusal to be intimidated by a down economy.
Brokerage Benefits
There are many reasons why hiring a broker makes sense in wedding gifts and favors business sales. First, business brokers are in tune with the realities of the market and are skilled at helping owners make their businesses attractive to premium buyers. 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.
Pros & Cons of a Sale to an Employee
Employee sales have pros and cons. A key employee may seem like a natural sales prospect. Since the worker already knows the ins and outs of the business, due diligence should be a breeze, not to mention the fact that you won't have to wait months or years for the right buyer to emerge on the open marketplace. But in many cases, employees expect to get a deal from their employer based on their years of service to the company. Seller financing is one way to get around the capital deficit of an employee-based wedding gifts and favors business sale, as long as you are willing to vet the employee's credit worthiness the same as any other buyer.
Finding Prospects
Many sellers don't realize how many prospective buyers there are for their businesses. We frequently see qualified buyers emerge from the seller's network of business and personal acquaintances. In other cases, sellers take a proactive approach to finding likely buyers and contacting them directly. If you aren't generating interest in the general marketplace, consider approaching companies that sell complementary products or are closely situated in your supply chain.
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