Advice on Niche Market Exit Planning
Selling a Tourism Consultants Business
Few entrepreneurs relish the idea of selling a business in a struggling economy. Yet tourism consultants businesses continue to be sold at a brisk pace, outperforming the sales of many other types of businesses.
The economy isn't the only thing that is uncertain these days. So are tourism consultants business buyers, many of whom are waiting to pull the trigger on their next acquisition.
Qualified buyers are constantly looking for attractive tourism consultants businesses. Not surprisingly, buyers expect to receive value for their dollars - and that means sellers need to demonstrate that their businesses are capable of delivering anticipated returns.
Seller Financing
Capital is hard to come by these days. Thanks to more stringent commercial lending requirements, sellers have become de facto lenders, providing the financing buyers need to get their feet in the door. Although 100% seller financing isn't recommended, sellers are financing up to 70% of the sale price to close deals.
What About Market Conditions?
No one plans to sell a tourism consultants business in a down economy. So far, government intervention and promises that the economy is slowly recovering haven't been enough to alleviate many entrepreneur's fears. However, many business sellers don't realize that a full economic rebound can have devastating consequences, particularly if sellers who have waited to list their businesses suddenly create a glut in the business-for-sale marketplace. So what's our point? The economy isn't the most important factor in the sale of your business. Instead, you should be focusing on making your tourism consultants business as attractive as possible so to buyers right now.
Sale Documents
A basic understanding of legal requirements is foundational for a successful business sale. Despite the confusion that exists among many sellers, the essentials of the sale are described in the Letter of Intent, a seminal document that is created prior to due diligence . The price described in the Letter of Intent may fluctuate based on information that is revealed during due diligence, but the inclusion of new requirements in the final contract could be a deal killer. For sellers, that makes a close review of the Letter of Intent more than a formality - it's a critical juncture on the path to closing.
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