Niche Exit Planning Tactics
Selling a Workers' Compensation Insurance Business
It's a misconception that no one is buying workers' compensation insurance businesses these days. Savvy entrepreneurs see workers' compensation insurance business opportunities as a path to short-term profits and long-term growth. Although final sales prices vary, the best sales combine strategy and hard work to achieve desired outcomes.
You need to get a good price for your workers' compensation insurance business. To get there, you'll need to set realistic expectations and follow a deliberate selling strategy.
Too often workers' compensation insurance business sellers cave under the pressure and settle for a lower sales price than they should. With the right strategy, your sale doesn't have to end that way.
How to Choose a Business Broker
Good business brokers inevitably produce better business sales. In the workers' compensation insurance business industry, experience is a must-have characteristic for qualified brokerage. As a practical matter, you'll also want to focus your search on brokers who have pre-existing relationships with attorneys, appraisers, and other professionals who can provide assistance at various stages of the process.
Sale Preparations for Your Workers' Compensation Insurance Business
Like it or not, a good business sale takes time. Profitable workers' compensation insurance business sales opportunities leverage a long-term strategy to increase the value of the business to buyers. Even though it may take years to adequately position your workers' compensation insurance business, the amount of preparation you perform will have direct correlation on asking and sale prices. But your efforts to improve your company's position and profitability will only be effective if you invest similar effort into the preparation of accurate financial statements for buyers.
Sweetening the Deal
Today's workers' compensation insurance business buyers expect sellers to offer concessions to persuade them to close the deal. Concessions can consist of non-cash as well as cash incentives. When you've reached your limit on price, consider offering non-cash concessions to encourage a commitment from the buyer. In the current economy, seller financing is becoming common in workers' compensation insurance business sales. If the prospect is inexperienced or lacks credentials in the industry, you can also offer to stay with the business for a specified period of time to help the new owner get on his feet and introduce him to your network of industry contacts.
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