How to Sell a Niche Market Business
Selling an Employee Benefit Administration Business
There are few things as intimidating as selling a business in a sluggish economy. Fortunately, a employee benefit administration business sale isn't as scary as it seems.
Waiting for better economic times to sell your company? That's a common anthem in the small business community.
If you're ready to move on, now is the right time to sell your employee benefit administration business.
Timing the Market
Timing is everything when it comes to selling an employee benefit administration business. A depressed economy means lower interest rates; lower interest rates increase the number of investors willing to take a chance on employee benefit administration businesses. Sooner or later, rates will rise, increasing the risk for prospective buyers of employee benefit administration businesses. Market conditions can be intimidating. But your larger concern should be whether or not your business is ready to be presented to qualified sale prospects.
Why Confidentiality Matters
Confidentiality determines risk in the business-for-sale marketplace. A low-key selling strategy is a low risk activity because you can control who does (and doesn't) know that your business is on the market. Eventually, word will leak out. When that happens, it can damage your standing with customers and vendors. Although it can be difficult, it's important to strike a balance between confidentiality and sale promotion. Brokers and consultants can mitigate the risk by implementing confidential sale techniques.
Legal Concerns
A basic understanding of legal requirements is foundational for a successful business sale. Despite the confusion that exists among many sellers, the essentials of the sale are described in the Letter of Intent, a seminal document that is created prior to due diligence . If you are seeking buyer concessions, the time to address them is before the Letter of Intent is drafted. For sellers, that makes a close review of the Letter of Intent more than a formality - it's a critical juncture on the path to closing.
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