Sell a Business Tips
Selling a Social Security Services Business
Few entrepreneurs relish the idea of selling a business in a struggling economy. Yet social security services businesses continue to be sold at a brisk pace, outperforming the sales of many other types of businesses.
Market timing is a perennial problem for business sellers.
There are still plenty of social security services business buyers looking for opportunities that present well in the marketplace.
Legal Considerations
It pays to invest in first-rate legal counsel when you sell a social security services business. Competent legal counsel ensures that the sale documents are in proper order. Furthermore, a good lawyers provides the counsel necessary to navigate the tax and liability issues that surround a business sale. We recommend hiring an attorney early in the process to gain insights about the legal consequences of various sale outcomes.
Sale Preparation Timeframes
There are no effective shortcuts for selling a social security services business. Buyers want to see growth trends, healthy profits and other variables that increase the likelihood of long-term success. Next, the business will need to be documented in professional financial statements and manuals that facilitate the ownership transition. Unless you have already started planning for your social security services business sale, it's going to take at least six months to prepare your business. However, to command the highest price, you'll probably need to spend one to two years preparing and positioning your business for buyers.
Valuation Methods
Professional appraisers can use three methods to determine the value ofa social security services business: The income method, the asset method and the market method. While the income method uses anticipated revenues as a value basis, the asset method focuses on the company's capital, real estate and intellectual assets. In many sales, the most accurate valuation comes from the market method which determines value based on the recent sales of similar businesses. A good appraiser will often use multiple valuation methods to arrive at a reasonable estimate. To drive up your sale price, position your social security services business by improving variables like assets, revenue and profitability during the years leading up to a sale.
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