Liquidation as an Exit Strategy: Is it time to get out of the retail business?
If so, you can do it quickly, safely, and for more money than you probably think is possible.
Here’s how!

Some retailers think that selling their store to someone who will continue to operate the business is the best way to obtain the highest price … They’re wrong. … Your business is very likely worth much more than the highest price you could obtain by selling it to another retailer.

It can take a year or longer to find the right buyer for your business. But, it’s a buyer’s market. You’re not likely to get your price and the buyer will want to borrow most of the purchase price from you.  The best way to sell your business is to sell it to the consumer who always pays the most. Selling as a going concern generally involves considerable financial risk. A buyer who is looking for a business usually does not pay cash. He wants to negotiate a leveraged buyout. If he has $500,000 in cash, he is not looking for a $500,000 business. He wants to buy a $1,000,000 business, paying, maybe, $200,000 up front and the rest over time. This leaves the buyer with working capital and some insurance that he’s buying a moneymaking enterprise.

Many retailers are reluctant to consider a store closing sale, because it is the most involved of the four means of selling, the return appears uncertain and “Going Out of Business” carries a negative connotation. However, it is important to carefully consider this approach because it can yield the highest return of the four methods listed.

A Store Closing Sale essentially attempts to sell the business in parts rather than as a whole. It makes sense that you can obtain a higher price by selling the business a piece at a time than can be obtained by selling everything together to one purchaser. This is especially true for most retail businesses. You probably agree that it’s possible to sell items individually at a higher price than can be obtained by selling those items in bulk. I can show you how to sell a retail business by selling each piece, from inventory … to fixtures … to office furniture and equipment. By conducting a professional store closing sale, the inventory and other assets of a business can generally be sold to consumers for far more than can be obtained any other way. It’s fast, safe, and the best way to get the highest price.

You may not be interested in selling right now. But eventually, you will want to move on to other enterprises or retire. An understanding of how you can obtain the most value for your business when you do decide to sell is important. Decisions you make now can enhance the value of your business when the time comes.

Order our full Retail Exit Strategy Information and Planning Kit below: (no cost or obligation offer for retail business owners only)

 

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