Advice on Niche Market Exit Planning
Selling a Teleconferencing Services Business
Although a teleconferencing services business may not be completely recession-proof, the best companies can survive nearly any storm. All it takes is a strategy to identify solid prospects and convert them to buyers.
Dire economic forecasts have forced many teleconferencing services business sellers into hibernation. Instead of listing their companies now, they're hanging back until they see signs of an economic recovery.
There are many factors involved with the decision to sell a business. So if you're waiting for the perfect market conditions to sell your teleconferencing services business, you could be waiting a while. If your business is ready to be sold, the time to sell is now. The key is to go into the sale with your eyes open and with complete awareness of market condition.
Seller Concessions
Seller concessions are becoming more commonplace in business-for-sale transactions. By far, seller financing is the most sought-after concession, especially in the current economic environment. With entrepreneurs struggling to secure capital, you may be the buyer's only source of financing. If you are unwilling or unable to offer financing, be prepared to offer other types of concessions to close the deal.
The Best Person to Sell Your Teleconferencing Services Business
An unassisted business sale is a double-edged sword. Without a doubt, you have the most at stake in the outcome of your sale. That makes you the most passionate advocate for your teleconferencing services business in the business-for-sale marketplace. However, your close connection to your company can also be a drawback. You see your company's potential. But buyers don't pay for potential - they pay for current market value. At a minimum, conduct an independent appraisal of the teleconferencing services business to gain an objective sense of fair market value.
Sale Preparation Timeframes
There are no effective shortcuts for selling a teleconferencing 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. Additionally, prospective buyers usually request documentation that allows them to understand the business's daily workflows and operational strategy. At a minimum, plan on spending six months preparing your teleconferencing services business for the marketplace. A more likely scenario is that it will take more than a year to create the conditions necessary to receive the maximum sale price.
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