Business buyers are a timid lot, even more so now that they are facing an uncertain economic landscape.
(article continues below)
Too often electric and electronic equipment and supplies business owners sell for a price that is well below market value. With the right strategy, your sale doesn't have to end that way.
Selling an Electric & Electronic Equipment & Supplies Business to an Employee
Employee sales have pros and cons. 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. Seller financing is one way to get around the capital deficit of an employee-based electric and electronic equipment and supplies business sale, as long as you are willing to vet the employee's credit worthiness the same as any other buyer.
Many sellers don't realize how many prospective buyers there are for their businesses. We frequently see qualified buyers emerge from the seller's network of business and personal acquaintances. In other cases, sellers take a proactive approach to finding likely buyers and contacting them directly. Competitors may seem like natural prospects and they are. The downside is that they won't pay top dollar and will probably absorb your company into their own.
Advantages of Hiring a Broker
A good broker can offer several benefits to business sellers. Right out of the gate, brokers know how to help their clients properly prepare their businesses for a sale. More importantly, brokers have the ability to identify serious buyers and maintain confidentiality throughout the sale process. Brokerage isn't cheap. But even though you can spend as much as 10% of the sale price on a good broker, you'll likely achieve decent ROI through an improved final sale price.
We think you may find these additional resources to be of interest.
If you plan on opening an electric and electronic equipment and supplies business, these helpul resources may be just what you've been looking for:
If you want information on how to sell to electric and electronic equipment and supplies businesses, this isn't the best resource for you on our site. These helpful guides are more appropriate for you:
If you are eager to get business succession tips for a different industry, please browse our list of exit planning guides below.