July 11, 2020  
 
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How to Sell to a Business

 

Selling an Orchard Services Business

Most businesses are susceptible to economic conditions and orchard services businesses are no exception. But in some cases, a down economy can actually improve saleability. All it takes is a strategy to identify solid prospects and convert them to buyers.

You've invested too much in your orchard services business to let it be sold for less than its worth. But unless you adequately prepare for the sale, some lucky buyer may walk away with a huge discount.
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To achieve your goals, you'll need to know the market as well as key business selling techniques. Since your future goals depend on the outcome of your sale, you'll need to have your head in the game from Day One.

Preparing Your Orchard Services Business for Sale

The outcome of a business sale is largely determined prior to a market listing. Profitable orchard services business sales begin with a comprehensive strategy that incorporates planning, preparation and market positioning. Everything you do to increase market share and profitability has a payoff in the final sale price of your orchard services business. But your efforts to improve your company's position and profitability will only be effective if you invest similar effort into the preparation of accurate financial statements for buyers.

Pros & Cons of a Sale to an Employee

Employee sales have pros and cons. There are some perks to selling the business in-house. The time and expense of locating the right buyer will be nonexistent and you won't have to spend weeks showing the buyer every square inch of the company. 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 orchard services business sale, as long as you are willing to vet the employee's credit worthiness the same as any other buyer.

The Best Person to Sell Your Orchard Services Business

As the owner, you are both the best and worst person to sell your orchard services business. On the one hand, no one knows your business better than you do. When it comes to earnings potential, asset condition, and other considerations, you are the world's leading expert on your company. However, your close connection to your company can also be a drawback. Nearly all sellers have an inflated sense of their company's value. At a minimum, conduct an independent appraisal of the orchard services business to gain an objective sense of fair market value.

More Exit Planning Articles

Given your interest in exit planning and in orchard services businesses, you might find these additional resources to be of interest.

Marketing an Orchard Services Business

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How To Choose An Investment Banker


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