How to Sell a Niche Market Business
Selling an Electric Tools Business
When it's time to sell your electric tools business, your future plans depend on your ability to get the highest possible sales price. Here's how to do it . . .
These days, the prospect of selling an electric tools business is so daunting that many would-be sellers are biding their time, waiting for a break in the economic clouds.
You'll always have an excuse for not putting your business on the market. Selling a electric tools business isn't easy, but we believe sellers can achieve their goals in any economic environment.
Average Timeframes
Hoping for a quick electric tools business sale? You may be disappointed. Unfortunately, there are no hard and fast rules about the length of time your business will be on the market. Pricing plays a role in sale length, but there are no guarantees that a fairly priced business will sell quickly. To adequately prepare your business listing, plan on spending six months to a year prior to listing. Even though it's conceivable that an attractive opportunity could sell in weeks, an immediate flood of offers could indicate that the business is underpriced.
Broker vs. No Broker
Anyone who has ever sold an electric tools business has eventually needed to decide whether to use a business broker or go it alone. Business brokers typically charge a 10% "success fee" when they sell a business, but they also handle many of the hassles that are associated with selling an electric tools business. You can also expect to receive a higher sales price for your business in a broker-assisted deal.
Turning the Tables: 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. You can also choose to exclude certain items like equipment or inventory from the deal if the buyer isn't willing to meet your price expectations. By selling excluded assets on the secondary market, you can compensate for an anemic sale price.
Share this article
Additional Resources for Entrepreneurs