Advice on Niche Market Exit Planning
Selling a Traveler's Checks Business
Few entrepreneurs relish the idea of selling a business in a struggling economy. Yet traveler's checks businesses continue to be sold at a brisk pace, outperforming the sales of many other types of businesses.
Intimidated by a sluggish economy, business buyers are more cautious than ever.
If your exit strategy involves selling a traveler's checks business now, you need to apply the right combination of preparation, strategy and common sense.
Equipment and Inventory Concerns
During due diligence, the buyer will undoubtedly conduct his own appraisal of your traveler's checks business's physical assets. Most sellers, however, conduct a pre-sale appraisal to gain an accurate gauge of asset value prior to negotiations. A professional appraisal is a necessity because it gives you the information you need to negotiate a sale price. During your appraisal process, you should also note the condition of your assets. Cost-effective repairs can then be made before your list your traveler's checks business.
Before You Sell
There is a lot of work that needs to be done before you're ready to sell your traveler's checks business. The first item on your checklist should be a reality check -- if you plan to sell your business for top dollar in just a few short months, you need to adjust your expectations%However, your first priority should be to set realistic expectations for the selling process and its eventual outcome. Armed with a realistic timeframe and asking price, you can begin to consult with your broker about the best way to approach likely buyers.
The Best Person to Sell Your Traveler's Checks Business
An unassisted business sale is a double-edged sword. Few people know your business as well as you do. The problem is that your passion for your business can also sabotage your sale. Nearly all sellers have an inflated sense of their company's value. Business brokers and other third-party consultants bring objectivity to the sale process and give you much-needed insight about buyers' mindsets.
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