Exit Planning Techniques By Market
Selling a First Aid Business
We hear from a lot of business owners who are timid about listing their first aid business. Despite the mood of the market, we think there are still opportunities to receive a good price for your first aid business. Here's what you need to know . . .
An assortment of hurdles and obstacles stand between you and the successful sale of your first aid business.
But at Gaebler, we see first aid businesses still selling at a brisk pace. Like always, unprofitable and poorly positioned businesses struggle to find buyers while sellers who have invested time and effort to prepare their sale are being rewarded in the marketplace.
Timing the Market
Now may be the best time to sell a first aid business. A depressed economy means lower interest rates; lower interest rates increase the number of investors willing to take a chance on first aid businesses. As the interest rates rise, it will be more difficult for buyers to make the numbers work in their favor. At Gaebler, we recognize the value of timing the sale of your first aid business. But we think it's more important to properly position your business for current market conditions -- whatever they may be.
Advantages of Hiring a Broker
A good broker can offer several benefits to business sellers. First-rate brokers are extremely skilled at communicating your company's strengths to prospective buyers. More importantly, brokers have the ability to identify serious buyers and maintain confidentiality throughout the sale process. Typical brokerage rates (a.k.a. success fees) run 10% of the final price - an expense that is usually recouped through a higher sales price and less time on the market.
Identifying Serious Buyers
Unfortunately, many of the prospects you will encounter aren't serious buyers. 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. Your business broker can offer insights about how to quickly spot tire kickers. As a rule, they limit the amount of information that is provided in the initial stages of an engagement, waiting to reveal the juiciest details of the business until the prospect has been thoroughly vetted. Smart sellers may require prospects to provide background and financial information fairly early in the process as a way of verifying the financial capacity to close the deal.
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