Exit Planning Tips
Selling a Human Resource Management Business
Unfortunately, many sellers are waiting to list their human resource management businesses until the economy fully rebounds. We think that's a mistake because for the right buyers, human resource management businesses are a great investment.
You won't find any magic formulas for selling a human resource management business, especially while the market is struggling to overcome the perceptions created by a down economy.
More than a few human resource management business sellers fail to receive fair market value for their businesses. With the right strategy, your sale doesn't have to end that way.
The Best Person to Sell Your Human Resource Management Business
There are benefits and drawbacks to handling the sale of your human resource management business on your own. Without a doubt, you have the most at stake in the outcome of your sale. That makes you the most passionate advocate for your human resource management business in the business-for-sale marketplace. However, your close connection to your company can also be a drawback. Nearly all sellers have an inflated sense of their company's value. At a minimum, conduct an independent appraisal of the human resource management business to gain an objective sense of fair market value.
Workforce Concerns
As a business owner, you want to keep you employees informed about your plans; as a seller it's in your best interest to keep your employees in the dark for as long as possible. On the one hand, confidentiality is critical for a successful human resource management business sale. However, the longer the selling process drags on, the more likely it is that rumors will begin to circulate throughout your workforce. Consider informing your key employees first, followed by the rest of your workforce later in the process. Maintain a positive tone in your conversations and answer your employees questions as completely as you can without jeopardizing the sale.
Finding Prospects
Many sellers don't realize how many prospective buyers there are for their businesses. We frequently see qualified buyers emerge from the seller's network of business and personal acquaintances. In other cases, sellers take a proactive approach to finding likely buyers and contacting them directly. If possible, steer clear of selling to a competitor if for no other reason than the fact that competitors pay less for human resource management businesses than other buyers.
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