Sell a Business for the Best Price
Selling a Passport and Visa Services Business
Think passport and visa services business sales have dwindled to a standstill? Think again. Here's what you need to know to get a fair price for your company.
The passport and visa services business-for-sale marketplace is a nuanced environment, full of pitfalls for sellers who aren't prepared for its demands.
Yet what many sellers don't appreciate is that a down economy can present the perfect opportunity to sell a passport and visa services business.
What About Market Conditions?
No one plans to sell a passport and visa services business in a down economy. So far, government intervention and promises that the economy is slowly recovering haven't been enough to alleviate many entrepreneur's fears. However, many business sellers don't realize that a full economic rebound can have devastating consequences, particularly if sellers who have waited to list their businesses suddenly create a glut in the business-for-sale marketplace. The simple truth is that the economy shouldn't dictate whether or not now is the right time to sell a passport and visa services business. Your individual circumstances and personal goals are more influential factors in determining when it's time to put your business on the market.
Working with Accountants
Accountants lay the financial groundwork for a business sale. From a seller perspective, an accountant can offer personal financial assistance, especially when it comes to handling the disposition of sale proceeds. Brokers often advise their clients to have an accountant perform an audit of the business prior to sale. With seller financing becoming common, professional accountants are playing a more central role in negotiations and buyer qualification.
Pros & Cons of a Sale to an Employee
Although it may seem easier to sell your passport and visa services business to an employee, this approach also has some pitfalls. A faithful employee may have the motivation and ability to continue to operate the business. If you need to sell quickly, the timeframe is condensed in an employee sale because you don't need to track down a buyer. Yet most employees lack the means to buy their employer's business at or near the asking price. Seller financing is one way to get around the capital deficit of an employee-based passport and visa services business sale, as long as you are willing to vet the employee's credit worthiness the same as any other buyer.
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