Advice on Niche Market Exit Planning
Selling a Temp Agency
Selling a temp agency doesn't happen overnight. It takes a deliberate process to get top dollar for your company.
Most business sellers are interested in disposing of their businesses as quickly as possible. But that's not how a temp agency sale works.
To sell a temp agency now, sellers need to make a strong case for buyers to purchase at or near the asking price.
Pre-Sale Checklist
There is a lot of work that needs to be done before you're ready to sell your temp agency. Perhaps the most important pre-sale consideration is to right-size your expectations to the realities of the market. Armed with a realistic timeframe and asking price, you can begin to consult with your broker about the best way to approach likely buyers.
Advantages of Hiring a Broker
There are many reasons why hiring a broker makes sense in temp agency sales. Right out of the gate, brokers know how to help their clients properly prepare their businesses for a sale. Second, a good business broker is a master at confidentiality locating temp agency sale prospects and guiding sellers through negotiations. Typical brokerage rates (a.k.a. success fees) run 10% of the final price - an expense that is usually recouped through a higher sales price and less time on the market.
Workforce Concerns
As a business owner, you want to keep you employees informed about your plans; as a seller it's in your best interest to keep your employees in the dark for as long as possible. You're concerned about confidentiality, and rightfully so. However, the longer the selling process drags on, the more likely it is that rumors will begin to circulate throughout your workforce. Consider informing your key employees first, followed by the rest of your workforce later in the process. Maintain a positive tone in your conversations and answer your employees questions as completely as you can without jeopardizing the sale.
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