Optimizing Business Exits
Selling a Recruitment and Staffing Services Business
The business-for-sale marketplace has experienced no shortage of uncertainty over the past several years. But recruitment and staffing services businesses haven't been deterred. In fact, we think this economy is a ripe environment for a recruitment and staffing services business sale.
Business buyers are a timid lot, even more so now that they are facing an uncertain economic landscape.
Yet what many sellers don't appreciate is that a down economy can present the perfect opportunity to sell a recruitment and staffing services business.
Seller Financing
Capital is hard to come by these days. Financial institutions have tightened up their lending policies, making it difficult for inexperienced and undercapitalized entrepreneurs to buy recruitment and staffing services businesses. As a result, buyers expect sellers to finance a significant portion of the sale. Although 100% seller financing isn't recommended, sellers are financing up to 70% of the sale price to close deals.
The Best Person to Sell Your Recruitment & Staffing Services Business
As the owner, you are both the best and worst person to sell your recruitment and staffing services business. Without a doubt, you have the most at stake in the outcome of your sale. That makes you the most passionate advocate for your recruitment and staffing services business in the business-for-sale marketplace. But your knowledge and personal insights about the recruitment and staffing services business are also the problem. Nearly all sellers have an inflated sense of their company's value. At a minimum, conduct an independent appraisal of the recruitment and staffing services business to gain an objective sense of fair market value.
Family Issues
Many sellers embarked on their recruitment and staffing services business sale without adequately considering the impact it will have on their families. Unfortunately, families often experience turmoil during a sale even when the primary owner is convinced it's the right decision. As a seller, you need to be sensitive to your family's feelings about the sale and make an effort to keep them informed about the process. Subsequently, selling a recruitment and staffing services business has to include ample communication and shared decision-making.
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