Optimizing Business Exits
Selling a Receivers Business
We hear from a lot of business owners who are timid about listing their receivers business. Despite the mood of the market, we think there are still opportunities to receive a good price for your receivers business. Here's what you need to know . . .
According to the experts, there is currently a large volume of shadow inventory in the receivers business market -- businesses that are waiting to be listed until the economy recovers.
If you're ready to move on, now is the right time to sell your receivers business.
Buyer Identification
Qualified receivers business buyers come from a range of sources and backgrounds. Avoid pigeon-holing your search to a single buyer category. Although it's helpful to target promotional tactics to likely buyers, allow for some exposure to the broader market. Sellers should also recognize the value of promoting their sale in trusted business networks, carefully balancing the need for confidentiality with the promotional potential of their contact base.
Economic Considerations
Think a receivers business sale is simple? Think again. Interest rates, spending, inflation, and other variables directly influence how long your receivers business will be on the market as well as its sales price. If you base the decision to sell your receivers business solely on the market, you may be in for a long wait. If you don't believe your receivers business would sell for top dollar right now, what can you do to make it more attractive to the marketplace? Increase profitability? Build brand visibility?. 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.
When the Sale Goes Off-Course
Many receivers business are tempted to save brokerage fees by selling their businesses on their own. But for every successful unassisted sale, several other receivers businesses sell below market value or languish on the market for years without attracting the interest of qualified buyers. If you decide to go solo and your business has been on the market for more than six months without a single buyer inquiry, it's time to hire a professional business broker. Lack of buyer enthusiasm or persistence indicates that something is wrong. The remedy is professional brokerage or a consultation with more experienced sellers.
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