Business Exits By Industry
Selling a Credit Card Protection Services Business
Many business leaders say that now isn't the time to try to sell a credit card protection services business. Don't be deterred by economic uncertainty. There are plenty of reasons why this is the right time to put your credit card protection services business on the market.
The buzz in the marketplace is that now isn't the right time to sell a credit card protection services business. Consequently, sellers are holding their businesses off the market until they are sure the market will sustain their asking prices.
Undaunted by economic conditions, many credit card protection services business sellers are achieving their sale goals through deliberate sale strategies.
Sale Costs
In a credit card protection services business sale, pricing is based on a number of factors, including the costs incurred during the sale. Good brokerage takes a 10% success fee off the top of the final sale price. Attorneys, accountants and appraisers work for a flat fee that can range from hundreds to thousands of dollars. If you need to compensate employees to assist with the sale, their services should also be considered.
Buyer Concessions
Sellers aren't the only ones who can make concessions in a business sale. In many instances, sellers can request buyer concessions. Although this scenario frequently plays out around seller financed deals, it's possible to push for a higher sales price or other form of compensation if you agree to mentor the buyer for a specified period of time. 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.
How to Identify Prospective Buyers
Whether you know it or not, prospective buyers for your credit card protection services business are all around you. In fact, there is a good chance you already know several individuals or companies that might be interested in buying your business for a decent price. Although some credit card protection services business sellers advertise their businesses in general classifieds, the most successful sales are those in which professional brokers seek out likely buyers. Competitors may seem like natural prospects and they are. The downside is that they won't pay top dollar and will probably absorb your company into their own.
Share this article
Additional Resources for Entrepreneurs