Optimizing Business Exits
Selling a Real Estate Support Services Business
Few entrepreneurs relish the idea of selling a business in a struggling economy. Yet real estate support services businesses continue to be sold at a brisk pace, outperforming the sales of many other types of businesses.
In a down economy, many real estate support services business sellers wait to list their businesses until they see signs that the economy has rebounded, making it difficult to accurately evaluate the number of real estate support services businesses that are actually for sale.
Market timing is a constantly moving target. Knowledgeable entrepreneurs understand that market timing isn't nearly as important as other factors in a real estate support services business sale. To improve sale outcomes, you will simply need to tailor your real estate support services business to today's buyers.
Business Assets
Buyers typically perform an independent appraisal of your real estate support services business's inventory, equipment, and physical assets. Most sellers, however, conduct a pre-sale appraisal to gain an accurate gauge of asset value prior to negotiations. A professional appraisal is a necessity because it gives you the information you need to negotiate a sale price. When you conduct your appraisal of your assets, note their condition and include it in the information packet you prepare for prospective buyers.
Before You Sell
There is a lot of work that needs to be done before you're ready to sell your real estate support services business. Perhaps the most important pre-sale consideration is to right-size your expectations to the realities of the market. Armed with a realistic timeframe and asking price, you can begin to consult with your broker about the best way to approach likely buyers.
Leveraging External Resources
Rarely, if ever, do owners sell a real estate support services business without outside assistance. Brokers can be an important resource for your sale, especially if you are unfamiliar with the business-for-sale marketplace. We also suggest hiring an attorney, an appraiser, and an accountant early in the process. The benefit of soliciting outside assistance early is that seemingly small decisions now can have big consequences later. By consulting professionals throughout the sale of your real estate support services business, you can avoid painful tax and legal complications both before and after closing.
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