Seeking Advice: Strategies to Offset Relocation Risk for a Buyer

intermediary profile

December 23, 2024

by an intermediary from Temple University - The Fox School of Business in Philadelphia, PA, USA

We own a door manufacturing company servicing the Mid-Atlantic region that we’re looking to sell. While there’s been some interest, a significant barrier has been the need for the buyer to relocate the business, as we’ve already sold the factory. Unsurprisingly, this has turned off potential investors.

I’d like to ask this group: What strategies could I use to offset this risk for the buyer?

Here are some ideas I’ve come up with so far:

  1. Structured Payment Option: Offer a royalty-based payment model instead of a lump-sum purchase, freeing up funds for the buyer to address the facility issue.
  2. Leverage Existing Infrastructure: Target buyers who already own or have access to suitable factory space.
  3. Complementary Business Pairing: Collaborate with the buyer to acquire a complementary business alongside ours, such as a window manufacturer. This could enable the creation of shared factory space, leveraging the synergy between windows and doors—products often purchased together for remodeling and construction projects.
    I’d love to hear your thoughts or additional strategies to make this a more attractive opportunity for potential buyers.
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commentor profile
Reply by a professional
from University of Southern California in North Palm Beach, FL, USA
DM me your email address, and I will send you the questions you need to be asking potential buyers thinking about relocating the business. This offer is only available to you.. (this is a product I sell along with coaching but you'll get the point without having to pay me anything, I think.)
commentor profile
Reply by a professional
from University of Southern California in North Palm Beach, FL, USA
^redacted‌ Thanks for DM asking. I will email what has worked for my clients, and brokers, too. After Jan 1st. Busy doing nothing this week. Be sure you provide your email address.
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