Niche Market Exit Planning Tips
Selling a Bookkeeping Services Business
You've learned a lot during your tenure as a bookkeeping services business owner. The next step is to position your business for the demands of the business-for-sale marketplace.
When the economy recovers, we expect to see a sudden influx of bookkeeping services businesses in the business-for-sale marketplace. Although these companies have been for sale, their owners have resisted listing them until a better economy materializes.
You'll always have an excuse for not putting your business on the market. With hard work and dedication, your bookkeeping services business can be sold at or above fair market value right now.
Business Assets
During due diligence, the buyer will undoubtedly conduct his own appraisal of your bookkeeping services business's physical assets. But you'll need to commission your own appraisal before you put your bookkeeping services business on the market to arm yourself with information for the negotiation phase. Without an accurate assessment of asset values it's impossible to intelligently negotiate on price. During your appraisal process, you should also note the condition of your assets. Cost-effective repairs can then be made before your list your bookkeeping services business.
Professional Appraisals
Next to your broker, a skilled appraiser is the person most capable of adding value to the price of your bookkeeping services business. Leading industry appraisers equip sellers with a value gauge that can be accessed during negotiations. If you're disappointed with the appraiser's estimate of your company's worth, you have the option of seeking a second opinion. However, it's more often the case that you will need to adjust your expectations of your business's value to buyers.
Pre-Sale Checklist
The pre-sale checklist for a bookkeeping services business is long and is full of critical tasks that will likely determine the success (or failure) of your sale. The first item on your checklist should be a reality check -- if you plan to sell your business for top dollar in just a few short months, you need to adjust your expectations%However, your first priority should be to set realistic expectations for the selling process and its eventual outcome. After you have consulted with a business broker to right size your expectations, you'll need to add several items to your checklist, including financial statement preparation, pre-sale appraisals, financial planning, market positioning and other tasks designed to communicate value to prospective buyers.
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