Exit Planning Advice By Market
Selling an Auto and Truck Wrecking Business
A good business is about more than dollars and sense. To make your auto and truck wrecking business what it is today, you've had to fully invest yourself in its success. Now it's time to put that same kind of focus into selling it.
The business-for-sale market is just as frustrating for buyers as it is for sellers these days. There are lots of buyers who want to own an auto and truck wrecking business, but have limited capital to get their foot in the door.
Success is a factor of preparation, execution and a keen eye for the market. As a business seller, you need to go into the process with the mental goal of presenting your business in the best possible light.
Selling an Auto & Truck Wrecking Business to an Employee
Although it may seem easier to sell your auto and truck wrecking business to an employee, this approach also has some pitfalls. A faithful employee may have the motivation and ability to continue to operate the business. If you need to sell quickly, the timeframe is condensed in an employee sale because you don't need to track down a buyer. Yet most employees lack the means to buy their employer's business at or near the asking price. A seller-financed deal may be necessary unless the employee has significant assets or investor backing.
Working with Accountants
Accountants lay the financial groundwork for a business sale. From a seller perspective, an accountant can offer personal financial assistance, especially when it comes to handling the disposition of sale proceeds. You may also want your accountant to assist in the preparation of professional financials to present to serious buyers. With seller financing becoming common, professional accountants are playing a more central role in negotiations and buyer qualification.
Preparing Family Members
Since your business was a family affair, your family members should also be involved in its sale Whether you realize it or not, your auto and truck wrecking business has been an important part of your family life. As a seller, you need to be sensitive to your family's feelings about the sale and make an effort to keep them informed about the process. Subsequently, selling an auto and truck wrecking business has to include ample communication and shared decision-making.
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