Tips for Selling a Business During an Economic Slump
When the economy is healthy and commerce is thriving, buyers want in. However, as soon as political unrest makes the news and a region suffers from the negative media surrounding even one instance of unrest, buyers become wary. Selling a business during a time in which interest is low can be challenging, but with the right broker assistance, you can get the best possible price and sell the venture fast.
You cannot expect buyers to become excited if you are negative. Slow periods are part of the property and commerce environments. If you are desperate, it will shine through and buyers will push you for a lower price than what the venture is worth.
Planning Helps to Avoid Haste
If you wait until the last moment to get documents in order, you will be caught off-guard. Plan the process to ensure you can take hold of an opportunity once it becomes available. Keep all financial statements up to date and keep tax affairs in order. Compile your supplier and client lists. Be sure to keep these up to date as well. You want information to be at hand for marketing purposes in addition to being able to answer questions about the operations.
Setting the price too high can cause delays in the sale process. Once you have to drop the price because of low interest, desperation kicks in and buyers notice. They will put forward lower offers and you will have to settle for less than the value of the business. Setting it too low means you lose out and you cannot negotiate the price up once you have advertised the venture at a low price. Seek professional help from our experienced brokers in setting the price right.
Marketing is Essential to Spark Interest
Make use of a broker firm with a national footprint, website, strong social media presence, and extensive buyer database for assistance. Such a firm will help to get your venture noticed for all the right reasons. We fit the profile, and with pre-screened potential buyers in just about every industry, newsletters, and a large marketing and promotions budget, we can introduce your business to qualified buyers.
Setting Up the Best Deal
Price alone is not good enough in a slow economic period. Many factors determine the viability of a venture for the buyer. To this end, determine the lowest offer that is acceptable. Also consider arrangements, such as seller finance, down payments, retainer stipulations, training available, guarantees, and essential documents that the buyer gets, as well as whether you will introduce the buyer to the landlord and which permits or licenses can be transferred.
Get Professional Help
The most important tip for selling a business in a slow economy is to seek professional help from experienced brokers. The brokers know how to evaluate the venture, they understand the target market, and are skilled marketers.
Get in touch for professional help in selling a business at a profit in South Africa.