How to Sell a Niche Market Business
Selling an Expanded Metals Business
You've invested time, effort, and creativity into building your expanded metals business. To see your ownership role through to completion, you will need to exhibit similar diligence in selling your company.
The economy isn't the only thing that is uncertain these days. So are expanded metals business buyers, many of whom are waiting to pull the trigger on their next acquisition.
If your exit strategy involves selling an expanded metals business in this environment, sellers need to make a strong case for buyers to purchase at or near the asking price.
Sellers aren't the only ones who can make concessions in a business sale. In many instances, sellers can request buyer concessions. For example, if the buyer needs seller financing, you can leverage a five-year loan to push for a higher sales price. Although you won't see all of the proceeds upfront, you'll earn interest on the balance and realize a higher price than you would in an all cash deal. Like seller concessions, buyer concessions should be addressed during negotiations, before the preparation of a Letter of Intent.
Should I Hire a Business Broker?
When selling an expanded metals business, you have two choices: Hire a broker to facilitate the sale or perform the sale unassisted. Is there a cost associated with hiring a broker? Sure - about 10% of the final sale prices. But a good broker will make selling your expanded metals business much less painful. You can also expect to receive a higher sales price for your business in a broker-assisted deal.
Hoping for a quick expanded metals 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.
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