Exit Planning Tips
Selling a Hotel and Motel Management Business
It's a misconception that no one is buying hotel and motel management businesses these days. Savvy entrepreneurs see hotel and motel management business opportunities as a path to short-term profits and long-term growth. Here's what you need to know to get a fair price for your company.
Selling a hotel and motel management business? You'll need to be prepared to address a variety of challenges that are common in the business-for-sale marketplace.
Most hotel and motel management businesses are good business opportunities, a fact that is not going unnoticed by today's discerning buyers.
Why Confidentiality Matters
Highly publicized hotel and motel management business sales are risky hotel and motel management 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. Maintaining confidentiality isn't easy, but without it you won't get top dollar for your business. In a worse case scenario, a profitable hotel and motel management business can be reduced to one that is struggling to survive. We recommend consulting a business broker to learn how you can simultaneously identify prospective buyers and maintain a confidential sale environment.
Should I Hire a Business Broker?
When selling a hotel and motel management business, you have two choices: Hire a broker to facilitate the sale or perform the sale unassisted. Is there a cost associated with hiring a broker? Sure - about 10% of the final sale prices. But a good broker will make selling your hotel and motel management business much less painful. 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 hotel and motel management business on BizBuySell.com and other popular online business-for-sale listing sites.
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. A business broker can be a valuable resource in right-sizing your expectations and preparing you for market realities.
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