Exit Planning Techniques By Market
Selling a Financial Services Business
No one said selling your business in a depressed economy would be easy. But selling your financial services business doesn't have to be as daunting as it sounds.
If you plan on selling your financial services business quickly, prepare to be disappointed.
Fortunately for sellers, forward-thinking entrepreneurs continue to be attracted to financial services businesses that exhibit strong financials and potential for future growth.
Dealing with Tire Kickers
Many prospective buyers will have a strong desire to acquire your financial services business. The bad news is that they will lack the financial capacity to close the deal. As a seller, it's important to separate the tire kickers from the serious buyers as soon as possible. Each tire kicker is an investment of time and energy that could be poured into finding a more qualified prospect. Good business brokers are adept at separating serious buyers from the rest of the pack. Never provide detailed information about your financial services business until the prospect has been qualified as a serious buyer.
Post-Sale Details
Due diligence has ended and you're ready to close on the sale of your financial services business. All that stands between you and the sale proceeds is a few signatures, right? Not so fast. The transition to the new owner, the distribution of sale proceeds and other issues can weigh heavily on sellers. If there are pending details that still need to ironed out, address them ASAP to ensure a smooth closing and transition.
Average Timeframes
Hoping for a quick financial services business sale? You may be disappointed. Although asking price and other factors contribute to sale time, it's difficult to predict how long your business will be on the market before you locate the right buyer. On average, it takes a minimum of six months to prepare a financial services business for sale and many sellers spend a year or more positioning their business to command a higher price. Once your business is ready for the marketplace, it could take an additional six months to a year to locate the right buyer.
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