Business Exits By Industry
Selling a Consultants' Referral Services Business
We hear it all the time: 'This economy is a hostile environment for a business sale.' However, consultants' referral services businesses haven't heard the news and are reporting steady action on the business-for-sale market.
Dire economic forecasts have forced many consultants' referral services business sellers into hibernation. Instead of listing their companies now, they're hanging back until they see signs of an economic recovery.
If your exit strategy involves selling a consultants' referral services business now, business sellers may need to apply a combination of incentives and techniques.
Buyer Identification
It's difficult to predict where the buyer of your consultants' referral services business will come from. Avoid pigeon-holing your search to a single buyer category. Although it's helpful to target promotional tactics to likely buyers, allow for some exposure to the broader market. Sellers should also recognize the value of promoting their sale in trusted business networks, carefully balancing the need for confidentiality with the promotional potential of their contact base.
Sale Costs
In a consultants' referral services business sale, pricing is based on a number of factors, including the costs incurred during the sale. Although they can significantly increase the final sale price, brokers typically receive a 10% commission. Professional consultations can also represent a significant expense during the course of a consultants' referral services business sale. Likewise, you'll need to consider how much it will cost to promote the sale as well as the lost time it will take for you and your team to navigate the sale process.
Advertising Your Sale
Successful consultants' referral services business sales incorporate comprehensive advertising plans. However, confidentiality and other concerns can present challenges, even for sales professionals. The knowledge that your business is being sold almost always converts into negative PR with your customers and vendors. There are multiple ways to promote a consultants' referral services business sale, many of which require the assistance of a professional business broker.
Share this article
Additional Resources for Entrepreneurs