Exit Planning Advice By Market
Selling an Appraisal Business
Maybe you're counting on your appraisal business to be a stepping stone to your next big business venture. Maybe it's your retirement fund. Either way, you need to maximize the price it gets in the business-for-sale marketplace.
Dire economic forecasts have forced many appraisal business sellers into hibernation. Instead of listing their companies now, they're hanging back until they see signs of an economic recovery.
Market timing is a constantly moving target. That's why we think it's important for appraisal business owners to know that it's possible to sell a business in any economy. The key is to go into the sale with your eyes open and with complete awareness of market condition.
What to Expect in an Appraisal Business Sale
Prepare yourself to feel a broad range of emotions when you sell an appraisal business. From hopefulness to remorse, it's all part of exiting of your company. Many sellers experience discouragement during a long sale process. Although it isn't easy, you can mitigate the emotional impact of an appraisal business sale by setting realistic expectations before you list your business.
Sale Costs
In an appraisal 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. Professional consultations can also represent a significant expense during the course of an appraisal business sale. Furthermore, your time has value, so you may need to include a personal compensation consideration in your expense estimates.
Family Business Sale Tips
The idea of passing a business along to a family member sounds idyllic to many business owners. in reality, a family-based appraisal business sale can be more complicated than selling to a stranger. Often, a sale to a family member creates fractures within the family. Whether you offer the family member special concessions or not, either the buyer or other family members may take offense. If possible, discuss a long-term, generational transition with the entire family and seek the advice of a professional consultant.
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