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Selling a Loan and Financing Services Business
There is a lot of confusion about the best way to sell a loan and financing services business in today's economy. We'll tell you how to keep your sale and your future plans on track.
When it comes to selling a loan and financing services business, there are no shortcuts to success.
Success is a factor of preparation, execution and a keen eye for the market. As a business seller, you need to go into the process with the mental goal of presenting your business in the best possible light.
Working with Appraisers
Next to your broker, a skilled appraiser is the person most capable of adding value to the price of your loan and financing services business. Armed with a professional appraisal, both you and your broker can enter the negotiation stage with confidence. If you're disappointed with the appraiser's estimate of your company's worth, you have the option of seeking a second opinion. However, it's more often the case that you will need to adjust your expectations of your business's value to buyers.
Negotiation 101
As a business seller, you have to be at the top of your negotiating game. In a loan and financing services business sale, knowledge is power -- the more you know about your business and prospective buyers, the easier it is to sway negotiations in your favor. But before you can negotiate effectively, you need to have a clear sense of your minimum sale requirements. If you lack clarity about your goals, you're guaranteed to fall short of achieving of them. A negotiating strategy is essential because it not only establishes parameters, but also creates a plan for overcoming buyer objections and impasses.
Timing the Market
Now may be the best time to sell a loan and financing services business. With interest rates at all-time lows, it's easy to see why loan and financing services businesses are an appealing investment opportunity for savvy investors. As the interest rates rise, it will be more difficult for buyers to make the numbers work in their favor. So we see market timing as a concern that can be easily mitigated by applying fundamental sales strategies and adequately preparing your company for buyers.
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