Business Exit Planning
Selling a Motorcycle Insurance Business
We hear from a lot of business owners who are timid about listing their motorcycle insurance business. Despite the mood of the market, we think there are still opportunities to receive a good price for your motorcycle insurance business. Here's what you need to know . . .
Cutting corners never pays off, especially in the sale of a motorcycle insurance business.
Yet what many sellers don't appreciate is that a down economy can present the perfect opportunity to sell a motorcycle insurance business.
Buyer Concessions
Sellers aren't the only ones who can make concessions in a business sale. In many instances, sellers can request buyer concessions. For example, if the buyer needs seller financing, you can leverage a five-year loan to push for a higher sales price. Although you won't see all of the proceeds upfront, you'll earn interest on the balance and realize a higher price than you would in an all cash deal. You can also choose to exclude certain items like equipment or inventory from the deal if the buyer isn't willing to meet your price expectations. By selling excluded assets on the secondary market, you can compensate for an anemic sale price.
Legal Concerns
In a motorcycle insurance business sale, the Letter of Intent contains the vital elements of the deal between the buyer and the seller . By the time the deal reaches the final contract, many of its features are set in stone. For sellers, that makes a close review of the Letter of Intent more than a formality - it's a critical juncture on the path to closing.
Economic Considerations
Several economic factors can affect the sale of a motorcycle insurance business. Many would-be sellers are laser-focused on economic indicators, anxiously awaiting the perfect time to list their companies. If you base the decision to sell your motorcycle insurance business solely on the market, you may be in for a long wait. Rather than watching the economy, we recommend watching buyers and tailoring your business to meet their investment expectations. One thing is for sure - buyers are paying more attention to your company's profitability and growth potential than they are to the latest quarterly economic indicators.
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