Business sellers are notorious for second-guessing themselves about the right time to put their companies up for sale.
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The economy hasn't squashed the market for explosives businesses. Like always, unprofitable and poorly positioned businesses struggle to find buyers while sellers who have invested time and effort to prepare their sale are being rewarded in the marketplace.
Advertising Your Sale
Successful explosives business sales incorporate comprehensive advertising plans. But if you think advertising your explosives business will be the same as running a product promotion, think again. Multiple factors complicate business-for-sale advertising, not the least of which is the fact that you don't want your competition to know that your company is on the market. A highly publicized sale creates vulnerabilities that can be exploited by your competitors. The best way to advertise an explosives business is to enlist the assistance of a business broker who is skilled in locating and contacting prospective buyers.
An experienced appraiser is part and parcel of a successful explosives business sale. Armed with a professional appraisal, both you and your broker can enter the negotiation stage with confidence. If you're disappointed with the appraiser's estimate of your company's worth, you have the option of seeking a second opinion. However, it's more often the case that you will need to adjust your expectations of your business's value to buyers.
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. Like seller concessions, buyer concessions should be addressed during negotiations, before the preparation of a Letter of Intent.
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