Optimizing Business Exits
Selling a Retirement Benefits Business
Despite the pessimistic mood of many sellers, your retirement benefits business can be a high value acquisition target for ambitious entrepreneurs -- even in today's tough economy.
Business sellers sometimes face a long, hard struggle to get fair market value for their companies. But with the adequate preparation, your retirement benefits business can attract buyers who recognize its potential.
In our opinion, that kind of thinking doesn't make sense. In fact, this might be the perfect time to sell a retirement benefits business. With the right information and strategy, you could be well on your way to a successful sale
Tips for Seller Financing
The shortage in today's marketplace isn't interested buyers -- it's capital. Financial institutions have tightened up their lending policies, making it difficult for inexperienced and undercapitalized entrepreneurs to buy retirement benefits 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.
How to Increase Sale Price
There are no simple ways to sell a retirement benefits business. If you don't know what you're doing, your business could languish on the market for months or even years. A business broker handles much of the legwork involved in the sale. If you try to sell your business without a broker, your time will be consumed by the details of the sale. Subsequently, you'll be distracted from the demands of your auto supply store, business will suffer, and the sale price you receive for your company will be dramatically reduced. Time after time, sellers who hire qualified brokers are more satisfied with the sales process - and the price they receive for their retirement benefits businesses.
When Is the Right Time to Sell?
If you're feeling like your tenure as the owner of the retirement benefits business is coming to an end, the time to sell is now. Some experts are telling retirement benefits business sellers to put their plans on hold until the economy fully rebounds. We aren't nearly as pessimistic about the retirement benefits business marketplace. With fewer retirement benefits businesses on the market, there are ample opportunities for sellers to capture the attention of qualified buyers.
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