Niche Market Exit Planning Tips
Selling a Burial Insurance Business
There are no guarantees when you sell a burial insurance business. But our tips will equip you with the information you need to increase the likelihood of a successful sales outcome.
Business sellers are notorious for second-guessing themselves about the right time to put their companies up for sale.
The good news is that ambitious entrepreneurs continue to see burial insurance businesses as a smart business investment -- and the market is rewarding owners who are willing to invest time and energy in their sale.
Working with Appraisers
An experienced appraiser is part and parcel of a successful burial insurance business sale. Leading industry appraisers equip sellers with a value gauge that can be accessed during negotiations. Even though you may disagree with the appraiser's value estimates, it's important to give your appraiser the information and independence he needs to present an objective opinion. To ensure accuracy, ask your broker to provide references for appraisers with industry experience.
Tips for Seller Financing
Business buyers are in a capital crunch. Banks and other lending institutions aren't eager to lend to unproven and undercapitalized burial insurance business buyers regardless of the business's potential. Rather than abandon their plans entirely, many buyers are pursuing finance concessions from sellers. As you prepare for the sale of your burial insurance business, expect to be asked to finance a substantial part of the sale price.
Moving On
The decision to sell your burial insurance business can't be made without adequate consideration of what will happen after the sale. Although next steps may seem inconsequential, they actually play an important role in shaping the structure of the sale of your burial insurance business. In today's market, many buyers expect seller financing - a concession that might not be a possibility for sellers whose next step requires the entire proceeds at the time of the sale.
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