Profitable Niche Market Exit Plans
Selling an Organic Farm
We hear from a lot of business owners who are timid about listing their organic farm. Despite the mood of the market, we think there are still opportunities to receive a good price for your organic farm. Here's what you need to know . . .
Most entrepreneurs have the skills and stamina to endure and prosper during the sale ofan organic farm.
If your exit strategy involves selling an organic farm now, you need to apply the right combination of preparation, strategy and common sense.
Negotiating Your Sale
As a business seller, you have to be at the top of your negotiating game. In an organic farm sale, knowledge is power -- the more you know about your business and prospective buyers, the easier it is to sway negotiations in your favor. But before you can negotiate effectively, you need to have a clear sense of your minimum sale requirements. If you lack clarity about your goals, you're guaranteed to fall short of achieving of them. If you aren't sure what you need, put negotiations on hold until you gain a clearer understanding of your own deal parameters.
After the Sale
As your organic farmsale nears completion, there is a lot of work remaining to be done. The transition to the new owner, the distribution of sale proceeds and other issues can weigh heavily on sellers. You, your employees and the buyer all have a stake in making sure the sale ends as smoothly as possible. If possible, work with the buyer to create a transition strategy that minimizes the impact on the business and your workforce.
Average Preparation Time
Preparing an organic farm sale takes time. Since buyers prefer to see evidence of future cash flow, you'll want to to strategically lock in cash flows and increase profits before you list the business. Next, the business will need to be documented in professional financial statements and manuals that facilitate the ownership transition. At a minimum, plan on spending six months preparing your organic farm for the marketplace. However, to command the highest price, you'll probably need to spend one to two years preparing and positioning your business for buyers.
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