The economy isn't the only thing that is uncertain these days. So are art gallery buyers, many of whom are waiting to pull the trigger on their next acquisition.
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Fortunately for sellers, forward-thinking entrepreneurs continue to be attracted to art galleries that exhibit strong financials and potential for future growth.
Pros & Cons of a Sale to an Employee
There are both benefits and drawbacks to selling an art gallery to an employee. There are some perks to selling the business in-house. 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. Yet most employees lack the means to buy their employer's business at or near the asking price. Most of the time, employees also expect owners to finance a large portion of the sale. So if you aren't willing to finance the sale or need to get top dollar for your art gallery, a sale to an employee is probably not a possibility.
Due diligence has ended and you're ready to close on the sale of your art gallery. All that stands between you and the sale proceeds is a few signatures, right? Not so fast. The transition to the new owner, the distribution of sale proceeds and other issues can weigh heavily on sellers. If there are pending details that still need to ironed out, address them ASAP to ensure a smooth closing and transition.
What About Market Conditions?
No one plans to sell an art gallery in a down economy. Although the economy is gaining steam, recovery is slow and entrepreneurs are holding their cards close to their vests. However, many business sellers don't realize that a full economic rebound can have devastating consequences, particularly if sellers who have waited to list their businesses suddenly create a glut in the business-for-sale marketplace. So what's our point? The economy isn't the most important factor in the sale of your business. Instead, you should be focusing on making your art gallery as attractive as possible so to buyers right now.
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