Optimizing Business Exits
Selling a Retirement Living Information and Referral Services Business
Your retirement living information and referral services business has been good to you. The next step is to position your business for the demands of the business-for-sale marketplace.
If you listen to many entrepreneurs, there never seems to be a good time to put a small business on the market.
Undaunted by economic conditions, many retirement living information and referral services business sellers are achieving their sale goals through deliberate sale strategies.
Timing the Market
Worried about timing? Believe it or not, this could be an advantageous time to put a retirement living information and referral services business up for sale. A depressed economy means lower interest rates; lower interest rates increase the number of investors willing to take a chance on retirement living information and referral services businesses. As the interest rates rise, it will be more difficult for buyers to make the numbers work in their favor. So we see market timing as a concern that can be easily mitigated by applying fundamental sales strategies and adequately preparing your company for buyers.
Selling a Retirement Living Information & Referral Services Business to an Employee
Employee sales have pros and cons. A faithful employee may have the motivation and ability to continue to operate the business. Since the worker already knows the ins and outs of the business, due diligence should be a breeze, not to mention the fact that you won't have to wait months or years for the right buyer to emerge on the open marketplace. However, some employees feel they are entitled to special treatment and pricing, especially if they have played a key role in the company's success. A seller-financed deal may be necessary unless the employee has significant assets or investor backing.
Broker vs. No Broker
The decision of whether or not to hire a business broker should never be taken lightly. Is there a cost associated with hiring a broker? Sure - about 10% of the final sale prices. But a good broker will make selling your retirement living information and referral services business much less painful. 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 retirement living information and referral services business sale.
Share this article
Additional Resources for Entrepreneurs