Advice on Niche Market Exit Planning
Selling a Title Insurance Business
It's a misconception that no one is buying title insurance businesses these days. Savvy entrepreneurs see title insurance business opportunities as a path to short-term profits and long-term growth. There aren't any guarantees, but if you adhere to fundamental business sale concepts, you can likely get a good price for your business.
Business sellers sometimes face a long, hard struggle to get fair market value for their companies. But with the adequate preparation, your title insurance business can attract buyers who recognize its potential.
If you're ready to move on, now is the right time to sell your title insurance business.
How to Choose a Business Broker
Good business brokers inevitably produce better business sales. In the title insurance business industry, experience is a must-have characteristic for qualified brokerage. The chemistry you have with your broker is a consideration. If you don't connect with a specific broker, move on to someone else - even if the first broker looks great on paper.
Valuation Methods
The methods for valuing a title insurance business vary according to your business model and circumstances. However, there are generally three valuation methods appraisers use to determine your company's worth. The income method determines value based on the amount of income the business is expected to generate. The asset method, on the other hand, is based on the value of tangible and non-tangible assets (e.g. brands and trademarks). Using recent title insurance business sales as its foundation, the market method factors market conditions into the valuation process. All three methods have multiple variations and it's not uncommon for appraisers to use a combination of the three to determine the value of your business. Sellers should take note of the fact that all three valuation methods reward businesses that takes steps to increase assets and income.
Preparing Family Members
Many sellers embarked on their title insurance business sale without adequately considering the impact it will have on their families. Unfortunately, families often experience turmoil during a sale even when the primary owner is convinced it's the right decision. The sale of the business will likely result in new family dynamics. The decision to sell a title insurance business has to include ample communication and shared decision-making.
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