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Selling a Communication Technology Services Business
The sale of a communication technology services business can be a difficult and trying process. But with a few tips, you can keep your shirt and your sanity in the sale of your business.
We hear it all the time: "I'm waiting until the economy recovers to list my business."
More than a few communication technology services business owners sell for a price that is well below market value. With the right strategy, your sale doesn't have to end that way.
Are You the Right Person to Sell Your Business?
An unassisted business sale is a double-edged sword. Few people know your business as well as you do. However, your close connection to your company can also be a drawback. Nearly all sellers have an inflated sense of their company's value. Business brokers and other third-party consultants bring objectivity to the sale process and give you much-needed insight about buyers' mindsets.
Sale Preparations for Your Communication Technology Services Business
First-time business sellers sometimes don't realize that the success or failure of their sale is determined before it hits the market. Profitable communication technology services business sales begin with a comprehensive strategy that incorporates planning, preparation and market positioning. Even though it may take years to adequately position your communication technology services business, the amount of preparation you perform will have direct correlation on asking and sale prices. But your efforts to improve your company's position and profitability will only be effective if you invest similar effort into the preparation of accurate financial statements for buyers.
Leveraging Seller Concessions
It's becoming more difficult to sell a communication technology services business without considering seller concessions. By far, seller financing is the most sought-after concession, especially in the current economic environment. With entrepreneurs struggling to secure capital, you may be the buyer's only source of financing. Other common seller concessions include staying on the mentor the new owner, non-compete clauses, and working as a consultant to mitigate the impact of new ownership.
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