Business Exits By Industry
Selling a Commercial Loans Business
We hear from a lot of business owners who are timid about listing their commercial loans business. Despite the mood of the market, we think there are still opportunities to receive a good price for your commercial loans business. Here's what you need to know . . .
Are most buyers timid about buying a commercial loans business in today's economic environment? You bet.
Many business owners don't know that commercial loans businesses are still a hot commodity, to the extent that sellers have properly prepared them for the marketplace.
Understanding Market Timing
Worried about timing? Believe it or not, this could be an advantageous time to put a commercial loans business up for sale. With interest rates at all-time lows, it's easy to see why commercial loans 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.
Post-Sale Details
As your commercial loans businesssale nears completion, there is a lot of work remaining to be done. The transition to the new owner, the distribution of sale proceeds and other issues can weigh heavily on sellers. Ideally, these and other post-sale details should be addressed early on. But if you haven't dealt with them yet, it's important to have a frank conversation with the buyer, your broker and other professionals as soon as possible.
Leveraging Seller Concessions
Seller concessions are becoming more commonplace in business-for-sale transactions. The most common seller concession is seller financing. With entrepreneurs struggling to secure capital, you may be the buyer's only source of financing. As an alternative, clearly state that seller financing is not an option and consider offering other concessions to see the sale through to its completion.
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