Top 5 Ways a Seller Can Make Themselves Attractive to a Buyer: Industry

Top 5 Ways a Seller Can Make Themselves Attractive to a Buyer: Industry

When business owners are preparing to sell their businesses, there are many ways they can make themselves attractive to buyers. As we represent many current and new business owners in Colorado, we have compiled the top five ways sellers can make themselves attractive to buyers. In Part 2 of our series, we will focus on Industry.

We all know industries experience ups and downs. Factors that might affect whether an industry is hot or cold include; market dynamics, government regulations, new technology, and whether or not an industry is desirable. Ultimately, whether an industry does better or worse from time to time depends on supply and demand.

For example, frozen yogurt was in high demand 5 years ago. Everyone wanted a new store because there was limited supply and the market was demanding new stores. Now there is a frozen yogurt store on every corner (over supply and under demand) which will affect the value of the company and whether the buyer wants to enter the market.

For a buyer, a business in a stable, consistent industry is desirable. Traditional industries such as construction and manufacturing tend to be more consistent and have fewer threats than say the frozen yogurt industry. Ultimately, buyers want to enter markets that have growth potential versus markets decreasing in value or with strong threats that will decrease the value of the industry in the future.


?Selling a business is a complicated manner. If you have additional questions, please contact one of our Colorado business brokers at 720.259.5099 or email us. 

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