Business Exits By Industry
Selling a Consumer Information Business
Does the economy have you down? For exiting owners, the idea of listing their company now can be terrifying. But selling your consumer information business doesn't have to be as daunting as it sounds.
Selling a consumer information business? You'll need to be prepared to address a variety of challenges that are common in the business-for-sale marketplace.
A business sale is always a sophisticated transaction and if you aren't prepared for it, your consumer information business sale could have an unexpected outcome. To stay on course, you'll need sound strategy and meticulous execution on your side.
Average Preparation Time
It's critical to properly plan for the sale ofa consumer information business. For starters, the financials need to demonstrate a track record of profitability and growth. Next, the business will need to be documented in professional financial statements and manuals that facilitate the ownership transition. Unless you have already started planning for your consumer information business sale, it's going to take at least six months to prepare your business. A more likely scenario is that it will take more than a year to create the conditions necessary to receive the maximum sale price.
Legal Concerns
In a consumer information business sale, the Letter of Intent contains the vital elements of the deal between the buyer and the seller . If you are seeking buyer concessions, the time to address them is before the Letter of Intent is drafted. Never sign a Letter of Intent until it has been properly reviewed by your attorney and you are in complete agreement with everything it contains.
Selling a Consumer Information 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. Seller financing is one way to get around the capital deficit of an employee-based consumer information business sale, as long as you are willing to vet the employee's credit worthiness the same as any other buyer.
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