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Selling a Check Processing Services Business
Over the past few years, the check processing services business marketplace has been a shaky environment for sellers. Here's what you'll need to know to sell a check processing services business during challenging economic times.
The buzz in the marketplace is that now isn't the right time to sell a check processing services business. Consequently, sellers are holding their businesses off the market until they are sure the market will sustain their asking prices.
Success is a factor of preparation, execution and a keen eye for the market. As a business seller, you need to go into the process with the mental goal of presenting your business in the best possible light.
Understanding Market Timing
Now may be the best time to sell a check processing services business. With interest rates at all-time lows, it's easy to see why check processing services businesses are an appealing investment opportunity for savvy investors. As the interest rates rise, it will be more difficult for buyers to make the numbers work in their favor. So we see market timing as a concern that can be easily mitigated by applying fundamental sales strategies and adequately preparing your company for buyers.
Selling to a Family Member
The idea of passing a business along to a family member sounds idyllic to many business owners. in reality, a family-based check processing services business sale can be more complicated than selling to a stranger. If it isn't handled properly, a family sale can quickly create irreparable divisions within your family. Whether you offer the family member special concessions or not, either the buyer or other family members may take offense. If possible, discuss a long-term, generational transition with the entire family and seek the advice of a professional consultant.
Broker vs. No Broker
When selling a check processing services business, you have two choices: Hire a broker to facilitate the sale or perform the sale unassisted. Although brokerage fees can be substantial, the right broker can reduce the amount of time your check processing services business sits on the market. You can also expect to receive a higher sales price for your business in a broker-assisted deal.
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