Business Exit Planning
Selling a Mortgage Insurance Business
We hear from a lot of business owners who are timid about listing their mortgage insurance business. Despite the mood of the market, we think there are still opportunities to receive a good price for your mortgage insurance business. Here's what you need to know . . .
It's a fact: Successful business sales take time.
But the good news is that there is still demand for mortgage insurance businesses that present well and offer solid earning potential.
Adjusting Expectations
When you made the decision to sell your mortgage insurance business, you had a specific set of outcomes in mind. However, no one told the marketplace about your expectations. The outcome of your sale will be determined by market forces - not by your personal circumstances or desires. Despite your best efforts, you need to prepare yourself for the possibility of receiving less than you expected from the sale of your mortgage insurance business. If buyers don't seem to be willing to meet your expectations, consult with your broker to modify your strategy and market approach.
Preparing Your Mortgage Insurance Business for Sale
The outcome of a business sale is largely determined prior to a market listing. Profitable mortgage insurance business sales begin with a comprehensive strategy that incorporates planning, preparation and market positioning. Branding, market positioning, and revenue growth take time, but they directly influence the price your mortgage insurance business will command in the marketplace. But your efforts to improve your company's position and profitability will only be effective if you invest similar effort into the preparation of accurate financial statements for buyers.
Family Business Sale Tips
Selling a business to a family member might sound like the best of both worlds. You get an exit strategy, your mortgage insurance business stays in the family, and everyone is happy. Yeah, right. Often, a sale to a family member creates fractures within the family. Whether you offer the family member special concessions or not, either the buyer or other family members may take offense. Although it may seem odd, a sale to a family member can take longer than a sale to a stranger because it may take time to work through family issues prior to closing.
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