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4 Tips to Quickly Sell a Textile Business in Charlotte, NC
Over the past decade, textile businesses in the United States have staggered considerably, much due to their growing competition from foreign importers. In fact, industry revenues have declined by 2.2 percent over the last five years. If you’re interested in exiting the business, follow these four tips to quickly sell a textile business in Charlotte, NC and the surrounding areas.
4 Ways to Quickly Sell a Textile Business in Charlotte, NC
After working hard to build your textile business, you deserve to receive its full value when it comes time to sell. These four tips will help you navigate a swift deal without compromising on the sale price.
Reach Out to Buyers Directly
After years of experience in the textile industry, you may already know of some individuals or organizations who could be interested in acquiring your textile business. Prospective buyers may seek out your manufacturing company for financial or strategic gain. If you feel you’re able to provide that to any specific candidates, make a point to meet with them.
Another option is to work with a full-time intermediary who already has relationships with prospective buyers. You’ll receive greater exposure to those already interested in the market. While confidentiality is a common concern among most sellers, business brokers have the resources in place to drive effective communication with buyers while protecting your identity.
Incentivize the Sale
Many sellers take “adding incentives” to mean reducing their asking price. If you’re in a tight spot where you need to exit as fast as possible, this is a viable option. But, if you have time to ride out the sale for a better offer, consider other ways to incentivize that don’t reduce your business’s value. You could include a variety of bonuses to attract the right business buyer, such as additional assets, training, or seller financing. Also, businesses with employees who plan to stay under new ownership usually incentivize buyers. Finding the right employees takes time, so most buyers would much rather buy into a textile business with existing staff where they don’t have to implement a training program.
You shouldn’t stop investing in your textile business even when it comes time to sell. Even if you don’t have the cash flow to fund any brand new updates or renovations, there are plenty of “housekeeping” tactics that can increase your value. Eliminate any unnecessary expenses that may be driving back on sales. Get rid of any problematic clients that aren’t serving your profits well. Evaluate your workflows and systems to see if you can trim any inefficiencies while still keeping your product development high.
Also, consider the overall appearance of your commercial real estate. You wouldn’t show a messy home to interested buyers, and the same principle applies when selling a business. As we mentioned, major aesthetic updates aren’t always possible, especially when hoping to sell on a deadline, but you can keep your place from looking sloppy by decluttering, organizing your material, and utilizing good lighting.
Encourage a Partnership
Let’s say you find the perfect candidate that is willing to buy within your desired time frame. There’s just one problem – they can’t afford what you’re asking. You’re now stuck in a position where you can either lower your asking price and hope to reach an agreement through negotiation, or wait to find another interested party. Another more practical solution may be to persuade this person to pursue a partnership, general or equity-online. In your buyer search, perhaps you’ve even run into a business owner who may be interested in teaming up with other individuals, so with their permission, you could pass their information along to see if the two would be a good fit.
Selling a textile business can be much more advantageous when working with an intermediary. After working with countless businesses across the greater Charlotte, North Carolina region, VR Business Brokers has the track record of success to help you sell a business in optimal time. Contact our team of experienced business brokers today!