Niche Exit Planning Strategies
Selling a Drivers Ed Business
Over the past few years, the drivers ed business industry has seen more than its share of fluctuations in business values. Here's what you'll need to know to sell a drivers ed business in the current economic environment.
When the economy recovers, we expect to see a sudden influx of drivers ed businesses in the business-for-sale marketplace. Although these companies have been for sale, their owners have resisted listing them until a better economy materializes.
The business-for-sale market is extremely dynamic. Knowledgeable entrepreneurs understand that market timing isn't nearly as important as other factors in a drivers ed business sale. You just need to know your buyers and structure the deal accordingly.
Post-Sale Details
As your drivers ed businesssale nears completion, there is a lot of work remaining to be done. Handing over the keys and saying goodbye to your employees is easier said than done, and requires thoughtful consideration prior to closing. If there are pending details that still need to ironed out, address them ASAP to ensure a smooth closing and transition.
Seller Financing
Capital is hard to come by these days. Thanks to more stringent commercial lending requirements, sellers have become de facto lenders, providing the financing buyers need to get their feet in the door. Although 100% seller financing isn't recommended, sellers are financing up to 70% of the sale price to close deals.
Timing the Market
Timing is everything when it comes to selling a drivers ed business. A depressed economy means lower interest rates; lower interest rates increase the number of investors willing to take a chance on drivers ed businesses. As the interest rates rise, it will be more difficult for buyers to make the numbers work in their favor. 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.
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