Business Exits By Industry
Selling a Community Services Business
Despite the pessimistic mood of many sellers, your community services business can be a high value acquisition target for ambitious entrepreneurs -- even in today's tough economy.
The business-for-sale market is just as frustrating for buyers as it is for sellers these days. Although there are plenty of entrepreneurs who want to buy a community services business, capital restrictions are holding them back.
In order to market a community services business these days, sellers need to make a strong case for buyers to purchase at or near the asking price.
Timing Your community services business Sale
When is it the right time to sell your community services business? If you're asking the question, now may be the time to put your business on the market. Some experts are telling community services business sellers (or would-be sellers) to take a wait and see approach. We aren't nearly as pessimistic about the community services business marketplace. The inventory of what we consider to be quality community services businesses is actually low right now and there is room for the right sellers to realize substantial gains with investment-conscious buyers.
Leveraging Industry Connections
There are a lot of different places to look for community services business buyers. Online business-for-sale databases have value, although they appeal to an exceptionally wide base of prospects. More focused prospects are typically found within industry networks. When leveraging industry relationships for sales prospects, you'll need to be cognizant of the potential for competitors to use knowledge of your sale against you in the marketplace. Your broker may be able to offer strategies for promoting your sale within your network while maintaining some remnant of a confidential sale.
Selling a Community Services Business to an Employee
Employee sales have pros and cons. A faithful employee may have the motivation and ability to continue to operate the business. If you need to sell quickly, the timeframe is condensed in an employee sale because you don't need to track down a buyer. Yet most employees lack the means to buy their employer's business at or near the asking price. A seller-financed deal may be necessary unless the employee has significant assets or investor backing.
Share this article
Additional Resources for Entrepreneurs