Exit Planning Advice By Market
Selling an Auto Financing and Loans Business
We hear from a lot of business owners who are timid about listing their auto financing and loans business. Despite the mood of the market, we think there are still opportunities to receive a good price for your auto financing and loans business. Here's what you need to know . . .
In a down economy, many auto financing and loans 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 auto financing and loans businesses that are actually for sale.
There is no simple way to sell a business. But the most prepared auto financing and loans business sellers are achieving fair market value and more for their companies through persistence and the application of sound selling techniques.
Seller Concessions
It's becoming more difficult to sell an auto financing and loans business without considering seller concessions. The most common seller concession is seller financing. Capital is scarce, causing new entrepreneurs to rely on sellers to finance at least part of the purchase price. If you are unwilling or unable to offer financing, be prepared to offer other types of concessions to close the deal.
Brokerage Benefits
There are many reasons why hiring a broker makes sense in auto financing and loans business sales. First, business brokers are in tune with the realities of the market and are skilled at helping owners make their businesses attractive to premium buyers. More importantly, brokers have the ability to identify serious buyers and maintain confidentiality throughout the sale process. Typical brokerage rates (a.k.a. success fees) run 10% of the final price - an expense that is usually recouped through a higher sales price and less time on the market.
What to Expect in an Auto Financing & Loans Business Sale
Prepare yourself to feel a broad range of emotions when you sell an auto financing and loans business. From hopefulness to remorse, it's all part of exiting of your company. Given your personal investment, you may also experience disappointment in the market's assessment of your company's value. You can prepare yourself by talking through your emotions with friends and family members, and thoroughly evaluating your minimum requirements before you put your auto financing and loans business on the market.
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