Exit Planning Techniques By Market
Selling a Furnished Apartments Business
For the right sellers, the business-for-sale marketplace is a friendly environment for furnished apartments business opportunities. Here's what you need to know to get a fair price for your company.
The process of selling a furnished apartments business can be one of the most stressful experiences of your entrepreneurial career.
But the good news is that there is still demand for furnished apartments businesses that present well and offer solid earning potential.
Seller Financing
Capital is hard to come by these days. Banks and other lending institutions aren't eager to lend to unproven and undercapitalized furnished apartments business buyers regardless of the business's potential. Rather than abandon their plans entirely, many buyers are pursuing finance concessions from sellers. Although 100% seller financing isn't recommended, sellers are financing up to 70% of the sale price to close deals.
Preparing Your Furnished Apartments Business for Sale
The outcome of a business sale is largely determined prior to a market listing. Successful furnished apartments business sales begin with a comprehensive strategy that incorporates planning, preparation and market positioning. Even though it may take years to adequately position your furnished apartments business, the amount of preparation you perform will have direct correlation on asking and sale prices. But your efforts to improve your company's position and profitability will only be effective if you invest similar effort into the preparation of accurate financial statements for buyers.
Brokerage Benefits
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. Even more, the best brokers have a track of record of discreetly identifying likely buyers and contacting them on your behalf. 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.
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