Exit Planning Tips
Selling a Hospitalization Insurance Business
Business-for-sale markets are susceptible to a variety of influences. As you know, the hospitalization insurance business industry has seen more than its share of fluctuations in business values. Here's what you'll need to know to sell a hospitalization insurance business during challenging economic times.
Business-for-sale markets are less dependent on economic conditions than most sellers think they are.
If your exit strategy involves selling a hospitalization insurance business now, sellers need to make a strong case for buyers to purchase at or near the asking price.
Tips for Seller Financing
Business buyers are in a capital crunch. Banks and other lending institutions aren't eager to lend to unproven and undercapitalized hospitalization insurance 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.
Tips for Working with A Business Broker
Brokerage is a mainstay of the business-for-sale marketplace. It's typical for hospitalization insurance business to rely on brokers to reduce market time and increase the final sales price. However, your broker will still expect you to materially participate in the sale of your business. Successfully brokered sales are based on solid relationships between brokers and sellers as well as the strict execution of a common selling strategy.
Dealing with Your Emotions
Business sellers sometimes struggle to handle the emotions of a sale. Although you might think you're ready to exit your business, selling and separating from a hospitalization insurance business scan stir up a range of emotions. It's important to allow yourself time to process your emotions during your exit. At the same time, it's helpful to consult with people who can help limit the influence of your emotions on negotiations and other aspects of the sale process.
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