Exit Planning Tips
Selling a Hotel and Motel Reservations Business
Selling a hotel and motel reservations business doesn't happen overnight. It takes a deliberate process to get top dollar for your company.
According to the experts, there is currently a large volume of shadow inventory in the hotel and motel reservations business market -- businesses that are waiting to be listed until the economy recovers.
But the good news is that there is still demand for hotel and motel reservations businesses that present well and offer solid earning potential.
Selling Time
Hoping for a quick hotel and motel reservations business sale? You may be disappointed. Although asking price and other factors contribute to sale time, it's difficult to predict how long your business will be on the market before you locate the right buyer. Before you can list your hotel and motel reservations business, you'll need to invest as much as a year in preparing it for prospective buyers. In a good market, an attractive hotel and motel reservations business can sell in as little as a few months, although it can take more than a year to find the right buyer after the business is listed.
Negotiating Your Sale
As a business seller, you have to be at the top of your negotiating game. More often than not, the person with the most knowledge will come out on top in a hotel and motel reservations business negotiation. However, the first step in good negotiating is to develop a sense of what you need to get out of the deal. A thorough understanding of sale price, possible concessions and other bottom line requirements gives you the ability to negotiate with confidence. If you aren't sure what you need, put negotiations on hold until you gain a clearer understanding of your own deal parameters.
Working with a Professional Accountant
Professional accountants lend credibility to the financial preparation of a hotel and motel reservations business sale. Before your hotel and motel reservations business goes on the market, you should sit down with your accountant to clarify your financial goals and the tax consequences of a sale. Brokers often advise their clients to have an accountant perform an audit of the business prior to sale. In many instances, your accountant will be invaluable in evaluating prospective buyers' financial position and buying capacity.
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