Optimizing Business Exits
Selling a Residential Care Facilities Business
Few entrepreneurs relish the idea of selling a business in a struggling economy. Yet residential care facilities businesses continue to be sold at a brisk pace, outperforming the sales of many other types of businesses.
You're optimistic about the economy and so are we. Now the challenge is to convert business buyers who may have a more skeptical outlook.
Fortunately for sellers, forward-thinking entrepreneurs continue to be attracted to residential care facilities businesses that exhibit strong financials and potential for future growth.
Tips for Seller Financing
Capital is hard to come by these days. Banks and other lending institutions aren't eager to lend to unproven and undercapitalized residential care facilities business buyers regardless of the business's potential. Rather than abandon their plans entirely, many buyers are pursuing finance concessions from sellers. Although 100% seller financing isn't recommended, sellers are financing up to 70% of the sale price to close deals.
Broker vs. No Broker
The decision of whether or not to hire a business broker should never be taken lightly. Although brokerage fees can be substantial, the right broker can reduce the amount of time your residential care facilities business sits on the market. If you're on the fence, do your research before you make a final decision. BizBuySell.com and other websites offer detailed information about brokers and the process of performing a brokered residential care facilities business sale.
Laying the Groundwork
In addition to improving profitability and market share, planning the sale of your business will require you to think about how you will present your company to buyers. In our experience, it pays to solicit the advice of a professional business broker as soon as possible. A good broker will guide you through the preparation stage and make sure you've covered all the bases. Financial statements, appraisals, operations manuals and other documents lay the foundation for your residential care facilities business sale, creating incentives for prospects to agree to a higher asking price.
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