Niche Market Exit Planning Tips
Selling a Bankruptcy Law Firm
Economic uncertainty influences the timing of many bankruptcy law firm sales. But based on what we're seeing in the business-for-sale marketplace, we don't think economic conditions should deter you from putting your bankruptcy law firm on the market.
Market timing is a perennial problem for business sellers.
Fortunately for sellers, forward-thinking entrepreneurs continue to be attracted to bankruptcy law firms that exhibit strong financials and potential for future growth.
The Best Person to Sell Your Bankruptcy Law Firm
An unassisted business sale is a double-edged sword. Without a doubt, you have the most at stake in the outcome of your sale. That makes you the most passionate advocate for your bankruptcy law firm in the business-for-sale marketplace. However, your close connection to your company can also be a drawback. Nearly all sellers have an inflated sense of their company's value. At a minimum, conduct an independent appraisal of the bankruptcy law firm to gain an objective sense of fair market value.
Average Preparation Time
There are no effective shortcuts for selling a bankruptcy law firm. Since buyers prefer to see evidence of future cash flow, you'll want to to strategically lock in cash flows and increase profits before you list the business. Next, the business will need to be documented in professional financial statements and manuals that facilitate the ownership transition. Since all of this takes time and effort, a bankruptcy law firm can rarely be ready for the marketplace in less than six months. A more likely scenario is that it will take more than a year to create the conditions necessary to receive the maximum sale price.
Team-Based Negotiation Strategies
Even if you hire a business broker to facilitate the sale of your bankruptcy law firm, it's likely that you will be the front line negotiator. A solo negotiation is a surefire way to may a tough job even tougher. A negotiation team comprised of trusted advisors and senior business leaders is essential in helping you devise a winning negotiation strategy. More importantly, a negotiation team can serve as a sounding board -- an objective presence that prohibits your personal emotions from clouding your judgment or sabotaging your efforts to negotiate a successful deal.
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