Exit Planning Advice By Market
Selling an Adjustable Bed Business
We hear from a lot of business owners who are timid about listing their adjustable bed business. Despite the mood of the market, we think there are still opportunities to receive a good price for your adjustable bed business. Here's what you need to know . . .
It takes dedication to sell an adjustable bed business under the best of circumstances. In the current market, you'll need to redouble your efforts and get serious about convincing prospects that your company is a good investment.
If your exit strategy involves selling an adjustable bed business these days, sellers need to make a strong case for buyers to purchase at or near the asking price.
Sweetening the Deal
Today's adjustable bed business buyers expect sellers to offer concessions to persuade them to close the deal. Concessions can consist of non-cash as well as cash incentives. When you've reached your limit on price, consider offering non-cash concessions to encourage a commitment from the buyer. A limited amount of training and mentoring may seem inconsequential to you, but to a young adjustable bed business owner, they can be critical launching points for their ownership journey.
Are You the Right Person to Sell Your Business?
There are benefits and drawbacks to handling the sale of your adjustable bed business on your own. On the one hand, no one knows your business better than you do. When it comes to earnings potential, asset condition, and other considerations, you are the world's leading expert on your company. However, your close connection to your company can also be a drawback. Nearly all sellers have an inflated sense of their company's value. At a minimum, conduct an independent appraisal of the adjustable bed business to gain an objective sense of fair market value.
Average Preparation Time
There are no effective shortcuts for selling an adjustable bed 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. Next, the business will need to be documented in professional financial statements and manuals that facilitate the ownership transition. Since all of this takes time and effort, a adjustable bed business can rarely be ready for the marketplace in less than six months. A more likely scenario is that it will take more than a year to create the conditions necessary to receive the maximum sale price.
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