Yes, Selling A Retail Business IS Different
"I think this is an excellent exercise to go through. It sets up strengths and weaknesses, and would certainly help bring out your finer points to any prospective buyer." |
At some point in time, every retail business must either be sold, or liquidated and closed down. There always is a transition.
The smart retailers are those who understand this reality, and give some thought to what type of transition they prefer for their business. Often, which route you choose - whether to sell, or to liquidate - depends on finding the right buyer, at the right time, and perhaps most importantly, at the right price!
Retail Strategists Pat Johnson and Dick Outcalt, Co-Founders of The Retail Owners Institute®, have developed a specialized strategic assessment tool for negotiating your way to that "right price". Their innovative and unique approach has been developed specifically for retail businesses.
The smart retailers are those who understand this reality, and give some thought to what type of transition they prefer for their business. Often, which route you choose - whether to sell, or to liquidate - depends on finding the right buyer, at the right time, and perhaps most importantly, at the right price!
Retail Strategists Pat Johnson and Dick Outcalt, Co-Founders of The Retail Owners Institute®, have developed a specialized strategic assessment tool for negotiating your way to that "right price". Their innovative and unique approach has been developed specifically for retail businesses.
First, some reminders when either buying or selling a business:
Next, do your homework.
Then, the key step: how to put a price tag on the business. This is where retail businesses deserve a different approach than other businesses.
- Some things will help you get the outcome you want.
- And, just as important, there are factors that can hurt your efforts; we have ideas on how you might overcome them.
Next, do your homework.
- Get the financial and legal paperwork in order.
- Spruce up the "curb appeal."
- Begin preparing the important "Opportunity Overview".
Then, the key step: how to put a price tag on the business. This is where retail businesses deserve a different approach than other businesses.
- Retailers are advised to use the Asset-based valuation method, but only when it addresses and values all THREE KINDS of assets in a retail business.
- Outcalt & Johnson have "written the book" on that!
