Waiting for better economic times to sell your company? That's a common anthem in the small business community.
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Does that mean selling your oil refinery business will be a piece of cake? No -- but you might be surprised to learn that the oil refinery businesses that are selling these days are finding success though simple, common sense selling strategies.
Timing the Market
Now may be the best time to sell an oil refinery business. A depressed economy means lower interest rates; lower interest rates increase the number of investors willing to take a chance on oil refinery businesses. When the economy recovers there will be more oil refinery business buyers on the market, but higher interest rates could present challenges. So we see market timing as a concern that can be easily mitigated by applying fundamental sales strategies and adequately preparing your company for buyers.
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. Second, a good business broker is a master at confidentiality locating oil refinery business sale prospects and guiding sellers through negotiations. Typical brokerage rates (a.k.a. success fees) run 10% of the final price - an expense that is usually recouped through a higher sales price and less time on the market.
When to End Negotiations
Negotiations have a way of dragging on forever. But sooner or later, someone needs to bring negotiations to a close. Unfortunately, that responsibility often falls on the seller. In an oil refinery business sale, a stalled negotiation can be an indication that the deal is dead. At this point in the process, an awareness of negotiation parameters really pays off. If the buyer is unwilling to accept your minimum demands, it's time to end negotiations and move on to the next prospect.
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