Sell a Business Tips
Selling a Social and Human Services Information and Referral Services Business
Most businesses are susceptible to economic conditions and social and human services information and referral services businesses are no exception. But in some cases, a down economy can actually improve saleability. All it takes is a strategy to identify solid prospects and convert them to buyers.
Personal and professional concerns surround the sale of a social and human services information and referral services business. But have you considered how your customers, vendors and employees will handle the sale?
In our opinion, that kind of thinking doesn't make sense. In fact, this might be the perfect time to sell a social and human services information and referral services business. Here's how to do it . . .
Sale Preparation Timeframes
It's critical to properly plan for the sale ofa social and human services information and referral services business. Since buyers prefer to see evidence of future cash flow, you'll want to to strategically lock in cash flows and increase profits before you list the business. Next, the business will need to be documented in professional financial statements and manuals that facilitate the ownership transition. Since all of this takes time and effort, a social and human services information and referral services business can rarely be ready for the marketplace in less than six months. If you can afford to wait, we recommend investing a few years in improving your business's financial position before you put it on the market.
Identifying Serious Buyers
Many prospective buyers will have a strong desire to acquire your social and human services information and referral services business. The bad news is that they will lack the financial capacity to close the deal. Even though tire kickers are a fact of life in any sale scenario, they sap valuable time and energy that could be spent identifying more serious prospects. Your business broker can offer insights about how to quickly spot tire kickers. Never provide detailed information about your social and human services information and referral services business until the prospect has been qualified as a serious buyer.
Broker vs. No Broker
The decision of whether or not to hire a business broker should never be taken lightly. Business brokers typically charge a 10% "success fee" when they sell a business, but they also handle many of the hassles that are associated with selling a social and human services information and referral services business. 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 social and human services information and referral services business sale.
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