Optimizing Business Exits
Selling a Real Estate School
You've heard the naysayers - now isn't the time to sell a real estate school. But what they don't know is that many entrepreneurs see real estate schools as a smart business investment.
The business-for-sale market is just as frustrating for buyers as it is for sellers these days. Although there are plenty of entrepreneurs who want to buy a real estate school, capital restrictions are holding them back.
Many real estate school owners fail to receive fair market value for their businesses. With the right strategy, your sale doesn't have to end that way.
Advantages of Hiring a Broker
A good broker can offer several benefits to business sellers. Right out of the gate, brokers know how to help their clients properly prepare their businesses for a sale. Even more, the best brokers have a track of record of discreetly identifying likely buyers and contacting them on your behalf. Typical brokerage rates (a.k.a. success fees) run 10% of the final price - an expense that is usually recouped through a higher sales price and less time on the market.
Preparing for What's Next
The decision to sell your real estate school can't be made without adequate consideration of what will happen after the sale. many sellers find themselves ill-equipped to handle life after their business and fail to understand that their future plans can influence the sale process. In today's market, many buyers expect seller financing - a concession that might not be a possibility for sellers whose next step requires the entire proceeds at the time of the sale.
Business Valuation
Multiple valuation methods exist for a real estate school. While the income method uses anticipated revenues as a value basis, the asset method focuses on the company's capital, real estate and intellectual assets. In many sales, the most accurate valuation comes from the market method which determines value based on the recent sales of similar businesses. A good appraiser will often use multiple valuation methods to arrive at a reasonable estimate. To drive up your sale price, position your real estate school by improving variables like assets, revenue and profitability during the years leading up to a sale.
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