Exit Planning Advice By Market
Selling an Animal Cages and Racks Business
Most businesses are susceptible to economic conditions and animal cages and racks 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.
You need to get a good price for your animal cages and racks business. To get there, you'll need to set realistic expectations and follow a deliberate selling strategy.
Most animal cages and racks businesses are good business opportunities, a fact that is not going unnoticed by today's discerning buyers.
Buyer Concessions
Sellers aren't the only ones who can make concessions in a business sale. In many instances, sellers can request buyer concessions. Although this scenario frequently plays out around seller financed deals, it's possible to push for a higher sales price or other form of compensation if you agree to mentor the buyer for a specified period of time. Asset exclusions, retained ownership shares and long-term contracts with another of the seller's companies can also be leveraged to extract concessions from buyers.
Sale Documents
In an animal cages and racks 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.
Timing the Market
Now may be the best time to sell an animal cages and racks business. Although the economy is generally struggling, low interest rates make animal cages and racks 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.
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