Exit Planning Advice By Market
Selling an Agricultural Equipment and Supply Business
There are few things as intimidating as selling a business in a sluggish economy. But selling your agricultural equipment and supply business doesn't have to be as daunting as it sounds.
The business-for-sale market is just as frustrating for buyers as it is for sellers these days. Although there are plenty of entrepreneurs who want to buy an agricultural equipment and supply business, capital restrictions are holding them back.
At Gaebler, we think waiting for the economy to rebound is a mistake for many business owners. Selling a agricultural equipment and supply business isn't easy, but we believe sellers can achieve their goals in any economic environment.
Timing the Market
Now may be the best time to sell an agricultural equipment and supply business. Although the economy is generally struggling, low interest rates make agricultural equipment and supply businesses more attractive to entrepreneurs who want to get in the game. As the interest rates rise, it will be more difficult for buyers to make the numbers work in their favor. So we see market timing as a concern that can be easily mitigated by applying fundamental sales strategies and adequately preparing your company for buyers.
In an agricultural equipment and supply business sale, the Letter of Intent contains the vital elements of the deal between the buyer and the seller . The price described in the Letter of Intent may fluctuate based on information that is revealed during due diligence, but the inclusion of new requirements in the final contract could be a deal killer. Never sign a Letter of Intent until it has been properly reviewed by your attorney and you are in complete agreement with everything it contains.
Why Confidentiality Matters
Confidentiality determines risk in the business-for-sale marketplace. If you are rigorous about maintaining a confidential sale, there is little risk in putting your agricultural equipment and supply business on the market. When and if your sale becomes public knowledge, competitors can use that information to weaken your position in the marketplace. Although it can be difficult, it's important to strike a balance between confidentiality and sale promotion. Brokers and consultants can mitigate the risk by implementing confidential sale techniques.
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