Advice on Niche Market Exit Planning
Selling a Trade Commissions Business
Owning a trade commissions business hasn't always been a bed of roses, but it's been worth the effort. The next step is to position your business for the demands of the business-for-sale marketplace.
You survived all the ups and downs of owning a business. Next, you'll need to prepare yourself to address the rigors of selling a trade commissions business.
In a skittish economy, trade commissions business sellers can access several strategies to receive fair market value from entrepreneurs who understand the value of a good business investment.
Working with Accountants
Accountants lay the financial groundwork for a business sale. Before your trade commissions business goes on the market, you should sit down with your accountant to clarify your financial goals and the tax consequences of a sale. Brokers often advise their clients to have an accountant perform an audit of the business prior to sale. With seller financing becoming common, professional accountants are playing a more central role in negotiations and buyer qualification.
Seller Financing
The shortage in today's marketplace isn't interested buyers -- it's capital. Banks and other lending institutions aren't eager to lend to unproven and undercapitalized trade commissions business buyers regardless of the business's potential. Rather than abandon their plans entirely, many buyers are pursuing finance concessions from sellers. As you prepare for the sale of your trade commissions business, expect to be asked to finance a substantial part of the sale price.
What About Market Conditions?
At first glance, today's market would seem to be a hostile place for trade commissions business sellers. Entrepreneurs and investors still exhibit healthy skepticism, despite initial indication that recovery has begun. 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 trade commissions business as attractive as possible so to buyers right now.
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