Exit Planning Tips
Selling a Homeowners' Associations Business
At first glance, an unstable economy would seem to be an unfriendly atmosphere for a homeowners' associations business sale. At Gaebler, we think it's a great time to sell a homeowners' associations business. Here's why . . ..
It takes dedication to sell a homeowners' associations business under the best of circumstances. In the current market, you'll need to redouble your efforts and get serious about convincing prospects that your company is a good investment.
Fortunately for sellers, forward-thinking entrepreneurs continue to be attracted to homeowners' associations businesses that exhibit strong financials and potential for future growth.
Average Preparation Time
Preparing a homeowners' associations business sale takes time. Since buyers prefer to see evidence of future cash flow, you'll want to to strategically lock in cash flows and increase profits before you list the business. Next, the business will need to be documented in professional financial statements and manuals that facilitate the ownership transition. Since all of this takes time and effort, a homeowners' associations business can rarely be ready for the marketplace in less than six months. A more likely scenario is that it will take more than a year to create the conditions necessary to receive the maximum sale price.
Why Confidentiality Matters
Highly publicized homeowners' associations business sales are risky homeowners' associations 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. But if word leaks out to the wrong people, your competitors can use that information to steal business and damage your credibility. 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.
Broker vs. No Broker
When selling a homeowners' associations business, you have two choices: Hire a broker to facilitate the sale or perform the sale unassisted. Although brokerage fees can be substantial, the right broker can reduce the amount of time your homeowners' associations business sits on the market. A highly skilled broker can compensate for his commission by selling your business for a significantly higher price than you could achieve on your own. But whether you use a broker or not, you may want to list your homeowners' associations business on BizBuySell.com and other popular online business-for-sale listing sites.
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