Business Exits By Industry
Selling a Communications Companies and Services Business
Looking for shortcuts? You won't find them when you sell a communications companies and services business. In this industry, a business sale takes time, effort and dedication. But with a few tips, you can keep your shirt and your sanity in the sale of your business.
Most business sellers are interested in disposing of their businesses as quickly as possible. But that's not how a communications companies and services business sale works.
You'll always have an excuse for not putting your business on the market. With hard work and dedication, your communications companies and services business can be sold at or above fair market value right now.
Professional Appraisals
An experienced appraiser is part and parcel of a successful communications companies and services business sale. By hiring an appraiser to conduct a thorough appraisal of tangible and non-tangible assets prior to listing, you get a measure of the true worth of your business. Although the appraised value of your business may not be the same as the sales price, you gain valuable insight that can be used to your advantage 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.
Understanding Market Timing
Now may be the best time to sell a communications companies and services business. A depressed economy means lower interest rates; lower interest rates increase the number of investors willing to take a chance on communications companies and services businesses. Sooner or later, rates will rise, increasing the risk for prospective buyers of communications companies and services businesses. 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.
Turning the Tables: Buyer Concessions
Sellers aren't the only ones who can make concessions in a business sale. In many instances, sellers can request buyer concessions. For example, if the buyer needs seller financing, you can leverage a five-year loan to push for a higher sales price. Although you won't see all of the proceeds upfront, you'll earn interest on the balance and realize a higher price than you would in an all cash deal. Asset exclusions, retained ownership shares and long-term contracts with another of the seller's companies can also be leveraged to extract concessions from buyers.
Share this article
Additional Resources for Entrepreneurs