Exit Planning Techniques By Market
Selling a Factoring Service
Your factoring service has been good to you. Now the trick is to convince cautious buyers that your operation is worth the asking price.
Business sellers are notorious for second-guessing themselves about the right time to put their companies up for sale.
If you're ready to move on, now is the right time to sell your factoring service.
Sale Documents
In a factoring service 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. For sellers, that makes a close review of the Letter of Intent more than a formality - it's a critical juncture on the path to closing.
Current Market Conditions
No one plans to sell a factoring service in a down economy. So far, government intervention and promises that the economy is slowly recovering haven't been enough to alleviate many entrepreneur's fears. But when the economy fully rebounds, a shadow inventory of factoring services will flood the market and drive prices down even further. So what's our point? The economy isn't the most important factor in the sale of your business. Instead, you should be focusing on making your factoring service as attractive as possible so to buyers right now.
Identifying Serious Buyers
If you haven't sold a business before, prepare to be overwhelmed by tire kickers -- seemingly interested buyers who lack the capacity, ability or desire to actually purchase your factoring service. Even though tire kickers are a fact of life in any sale scenario, they sap valuable time and energy that could be spent identifying more serious prospects. Good business brokers are adept at separating serious buyers from the rest of the pack. Never provide detailed information about your factoring service until the prospect has been qualified as a serious buyer.
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