Advice on Niche Market Exit Planning
Selling a Tax Return Preparation Business
Unfortunately, many sellers are waiting to list their tax return preparation businesses until the economy fully rebounds. We think that's a mistake because for the right buyers, tax return preparation businesses are a great investment.
Business-for-sale markets are less dependent on economic conditions than most sellers think they are.
Armed with a deliberate selling strategy, sellers of tax return preparation businesses are finding qualified buyers, even in today's tough market.
Post-Sale Details
Due diligence has ended and you're ready to close on the sale of your tax return preparation business. All that stands between you and the sale proceeds is a few signatures, right? Not so fast. The transition to the new owner, the distribution of sale proceeds and other issues can weigh heavily on sellers. You, your employees and the buyer all have a stake in making sure the sale ends as smoothly as possible. If possible, work with the buyer to create a transition strategy that minimizes the impact on the business and your workforce.
Preparing for What's Next
The decision to sell your tax return preparation business can't be made without adequate consideration of what will happen after the sale. many sellers find themselves ill-equipped to handle life after their business and fail to understand that their future plans can influence the sale process. In today's market, many buyers expect seller financing - a concession that might not be a possibility for sellers whose next step requires the entire proceeds at the time of the sale.
Equipment and Inventory Concerns
It's incumbent on buyers to commission their own appraisal of your tax return preparation business's physical assets. Most sellers, however, conduct a pre-sale appraisal to gain an accurate gauge of asset value prior to negotiations. A professional appraisal is a necessity because it gives you the information you need to negotiate a sale price. During your appraisal process, you should also note the condition of your assets. Cost-effective repairs can then be made before your list your tax return preparation business.
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