Smart Exit Planning Strategies for Niche Markets
Selling a Geographic Information Services Business
A lot can go wrong during the sale of a geographic information services business in today's economy. More than ever before, it's important for sellers to know the tactics and techniques that are being used to maximize sales price and achieve desired sale outcomes.
Business buyers are a timid lot, even more so now that they are facing an uncertain economic landscape.
But they're also savvy enough to know a good deal when they see it. So for geographic information services business sellers, today's market is all about convincing buyers that the numbers make their companies worth the asking price.
Handling Unexpected Outcomes
If you're smart, you entered your geographic information services business with a set of assumptions about what it would achieve. However, no one told the marketplace about your expectations. The outcome of your sale will be determined by market forces - not by your personal circumstances or desires. Despite your best efforts, you need to prepare yourself for the possibility of receiving less than you expected from the sale of your geographic information services business. If buyers don't seem to be willing to meet your expectations, consult with your broker to modify your strategy and market approach.
Maintaining Objectivity
Objectivity is a rare commodity in a business sale. Your estimate of your company's worth is probably skewed by your emotions and your close, personal connection to the business. Although it may be a hard pill to swallow, you need to find a way to introduce objectivity into your sale. Many sellers create a negotiation team to minimize the effect of their personal emotions on negotiations. More importantly, this team can perform a reality check on your expectations for the sale.
Why Confidentiality Matters
Highly publicized geographic information services business sales are risky geographic information services businesssales. A low-key selling strategy is a low risk activity because you can control who does (and doesn't) know that your business is on the market. Eventually, word will leak out. When that happens, it can damage your standing with customers and vendors. Although it can be difficult, it's important to strike a balance between confidentiality and sale promotion. Brokers and consultants can mitigate the risk by implementing confidential sale techniques.
Share this article
Additional Resources for Entrepreneurs