Advice on Niche Market Exit Planning
Selling a Tax Reporting Services Business
The decision to sell your tax reporting services business isn't something that should be taken lightly, especially these days. If a business exit is on the horizon, you'll want to check out our suggestions for staying ahead of the market.
In any economy, there is a right way and a wrong way to sell a business.
If your exit strategy involves selling a tax reporting services business in this environment, sellers need to make a strong case for buyers to purchase at or near the asking price.
Leveraging Seller Concessions
It's becoming more difficult to sell a tax reporting services business without considering seller concessions. By far, seller financing is the most sought-after concession, especially in the current economic environment. Traditional lenders and investors are gun shy - and that makes sellers a logical funding source for many buyers. Other common seller concessions include staying on the mentor the new owner, non-compete clauses, and working as a consultant to mitigate the impact of new ownership.
Benefits of Third-Party Assistance
Rarely, if ever, do owners sell a tax reporting services business without outside assistance. Brokers can be an important resource for your sale, especially if you are unfamiliar with the business-for-sale marketplace. We also suggest hiring an attorney, an appraiser, and an accountant early in the process. The early recruitment of external resources reduces your risk and results in a more predictable final outcome.
Factoring In Economic Variables
When you sell a tax reporting services business, there are a number of variables you need to consider. Interest rates, spending, inflation, and other variables directly influence how long your tax reporting services business will be on the market as well as its sales price. The truth is that perfect market conditions may never materialize. A much better approach is to focus on the factors that always attract buyers and investors. When it comes to selling a tax reporting services business, successful sales sales often boil down to the business itself - not the economy.
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