Optimizing Business Exits
Selling a Real Estate Exchanges Business
Few entrepreneurs relish the idea of selling a business in a struggling economy. Yet real estate exchanges businesses continue to be sold at a brisk pace, outperforming the sales of many other types of businesses.
Business-for-sale markets are less dependent on economic conditions than most sellers think they are.
The economy hasn't squashed the market for real estate exchanges businesses. Like always, unprofitable and poorly positioned businesses struggle to find buyers while sellers who have invested time and effort to prepare their sale are being rewarded in the marketplace.
Economic Considerations
When you sell a real estate exchanges business, there are a number of variables you need to consider. Interest rates, spending, inflation, and other variables directly influence how long your real estate exchanges business will be on the market as well as its sales price. The truth is that perfect market conditions may never materialize. A much better approach is to focus on the factors that always attract buyers and investors. 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.
How to Skillfully Address Buyer Concerns
It's a common scenario: in an effort to perform a thorough due diligence process, buyers flood real estate exchanges business sellers with questions and requests, often to the point of becoming a nuisance. The questions real estate exchanges business ask during due diligence are designed to alleviate their concerns about the business and should be promptly addressed by the seller. To protect yourself, don't offer an answer until you are sure the information you are providing is 100% accurate. Refer to the Letter of Intent to determine how to wrap up due diligence and move the buyer on to closing.
Working with Appraisers
An experienced appraiser is part and parcel of a successful real estate exchanges business sale. Leading industry appraisers equip sellers with a value gauge that can be accessed during negotiations. 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.
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