Sell to a strategic buyer
An operator in the industry who sees synergies.
Exit planning
Plan your exit before you need it.
The best exits are planned years ahead. A practical guide for owners of appliance and home goods businesses, from someone who buys them.
Why planning early pays
Owners who plan their exit two or three years in advance usually have more options, better terms and fewer surprises. Owners who wait until they must sell often have less leverage.
Planning does not commit you to selling. It simply makes the business stronger and gives you choices.
Your exit options
Sell to a financial buyer
An investor who may keep management in place.
Management buyout
Your leadership team buys the business.
Family succession
Passing ownership to the next generation.
Partner buyout
One partner exits while others continue.
Orderly wind-down
Selling inventory and assets and closing well.
Years 3 to 2: strengthen the business
Clean up financial reporting, reduce reliance on the owner, document processes, address customer or supplier concentration and clear aged inventory.
Years 2 to 1: get ready
Assemble advisors such as an attorney, accountant and, if you choose, a broker. Understand the tax implications of different structures, including asset versus stock sales, and decide what matters most to you.
Final year: run a clean process
Speak with qualified buyers, compare offers on more than price, including terms, timing and plans for your team, and keep running the business at full strength until closing.
Frequently asked questions
When should I start planning my exit?
Ideally two to three years before you want to sell, which gives time to strengthen the business and choose the best path.
What is the difference between an asset sale and a stock sale?
In an asset sale the buyer purchases specific assets and liabilities; in a stock sale the buyer purchases the ownership of the company itself. The tax and legal effects differ, so review them with your advisors.
What reduces the value of an appliance business?
Heavy dependence on the owner, a few large customers, expiring supplier agreements, aged inventory and unclear financial records.
Should I tell my employees I plan to sell?
Usually only after a deal is well advanced, and in coordination with the buyer, to avoid uncertainty. Your advisors can help with timing.
About us
Led by Albert & Elie Fouerti
applianceexit.com is part of the Fouerti family of companies, led by brothers Albert Fouerti and Elie Fouerti. Based in Brooklyn, New York, they invest in and operate businesses across real estate, property management, appliances, home goods and sporting goods.
Written by Elie Fouerti
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