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 editors and editorial service, capital restrictions are holding them back.
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Many business owners don't know that editors and editorial services are still a hot commodity, to the extent that sellers have properly prepared them for the marketplace.
Leveraging Seller Concessions
It's becoming more difficult to sell an editors and editorial service without considering seller concessions. By far, seller financing is the most sought-after concession, especially in the current economic environment. Traditional lenders and investors are gun shy - and that makes sellers a logical funding source for many buyers. Other common seller concessions include staying on the mentor the new owner, non-compete clauses, and working as a consultant to mitigate the impact of new ownership.
Understanding Market Timing
Worried about timing? Believe it or not, this could be an advantageous time to put an editors and editorial service up for sale. A depressed economy means lower interest rates; lower interest rates increase the number of investors willing to take a chance on editors and editorial services. As the interest rates rise, it will be more difficult for buyers to make the numbers work in their favor. At Gaebler, we recognize the value of timing the sale of your editors and editorial service. But we think it's more important to properly position your business for current market conditions -- whatever they may be.
When the Sale Goes Off-Course
The editors and editorial service-for-sale marketplace is a mixed bag of brokered sales and solo efforts. Although there are exceptions, solo sales typically take longer and are less productive than brokered sales. As a rule, no business should sit on the market for more than six months without attracting the interest of at least a handful of qualified buyers. Lack of buyer enthusiasm or persistence indicates that something is wrong. The remedy is professional brokerage or a consultation with more experienced sellers.
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