Exit Planning Strategies
Selling a Vital Records Storage Business
We hear it all the time: 'This economy is a hostile environment for a business sale.' However, vital records storage businesses continue to sell at a brisk pace, regardless of the economy.
Most business sellers are interested in disposing of their businesses as quickly as possible. But that's not how a vital records storage business sale works.
However, serious buyers also understand the value of a good vital records storage business. So for vital records storage business sellers, today's market is all about convincing buyers that the numbers make their companies worth the asking price.
Turning the Tables: Buyer Concessions
In a tight economy, seller concessions are the name of the game. But that doesn't mean you can't push for buyer concessions to achieve a more favorable outcome in the sale of your vital records storage business. Although this scenario frequently plays out around seller financed deals, it's possible to push for a higher sales price or other form of compensation if you agree to mentor the buyer for a specified period of time. Asset exclusions, retained ownership shares and long-term contracts with another of the seller's companies can also be leveraged to extract concessions from buyers.
Broker vs. No Broker
When selling a vital records storage business, you have two choices: Hire a broker to facilitate the sale or perform the sale unassisted. Although brokerage fees can be substantial, the right broker can reduce the amount of time your vital records storage business sits on the market. You can also expect to receive a higher sales price for your business in a broker-assisted deal.
Current Market Conditions
Today's vital records storage business sellers face an intimidating economic landscape. 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. Like it or not, the time to sell your vital records storage business may be right now, as long as your willing to adequately prepare your business for the marketplace.
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