Advice on Niche Market Exit Planning
Selling a Travel Clubs and Services Business
Business-for-sale markets are susceptible to a variety of influences. As you know, the travel clubs and services business marketplace has been a shaky environment for sellers. Here's what you'll need to know to sell a travel clubs and services business during challenging economic times.
In a down economy, many travel clubs and services business sellers wait to list their businesses until they see signs that the economy has rebounded, making it difficult to accurately evaluate the number of travel clubs and services businesses that are actually for sale.
In today's market, there is still plenty of room for travel clubs and services businesses that demonstrate solid earning capacity and a robust market position.
Sale Costs
In a travel clubs and services business sale, pricing is based on a number of factors, including the costs incurred during the sale. Good brokerage takes a 10% success fee off the top of the final sale price. Depending on your circumstances, you may also incur substantial expenses in hiring legal, appraisal and accounting professionals. Furthermore, your time has value, so you may need to include a personal compensation consideration in your expense estimates.
Identifying Serious Buyers
Unfortunately, many of the prospects you will encounter aren't serious buyers. As a seller, it's important to separate the tire kickers from the serious buyers as soon as possible. Each tire kicker is an investment of time and energy that could be poured into finding a more qualified prospect. Your business broker can offer insights about how to quickly spot tire kickers. Never provide detailed information about your travel clubs and services business until the prospect has been qualified as a serious buyer.
Economic Considerations
When you sell a travel clubs and services business, there are a number of variables you need to consider. Interest rates, spending, inflation, and other variables directly influence how long your travel clubs and services business will be on the market as well as its sales price. But at Gaebler, we advise our business partners to look beyond simple economic data when determining whether it's the right time to sell a travel clubs and services business. If you don't believe your travel clubs and services business would sell for top dollar right now, what can you do to make it more attractive to the marketplace? Increase profitability? Build brand visibility?. When it comes to selling a travel clubs and services business, successful sales sales often boil down to the business itself - not the economy.
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