THREE WAYS TO SELL YOUR BUSINESS
Three Ways To Sell Your Business
By: Chris Lynch, CEO Lynch Sales Company
There are three ways to sell your retail business, but only one way to do so profitably.
Selling to a group of employees or individual investor may preserve some jobs at the local level, but those buyers will not be willing, nor will any bank loan them enough to pay you what your business is worth. They will base your inventory value on the wholesale cost and a sizeable discount from cost since it is not new merchandise. If you have $500,000 worth of inventory, you will be lucky to receive $350,000. This is the same formula used by liquidation firms whose business model is based upon a joint venture or buyout.
The second way is to use a business broker, who takes a commission and will also value your inventory as stated above, but has a very low percentage of completed transactions.
The third and best way is to have a professionally run liquidation sale, selling your inventory directly to the retail buying public, who will pay you what your inventory is actually worth! After the dust settles and the Sale is completed, you will find that you have recovered your cost inventory investment of $500,000 plus a profit of $150,000 to $200,000.
The choice is clear. You can choose to sell your business to another entity and walk away with $350,000 or use a company like The Lynch Sales Company and walk away with $650,000 to $700,000.