How to Sell a Niche Market Business
Selling an Enrolled Agents Business
We hear from a lot of business owners who are timid about listing their enrolled agents business. Despite the mood of the market, we think there are still opportunities to receive a good price for your enrolled agents business. Here's what you need to know . . .
It's a fact: Successful business sales take time.
Undaunted by economic conditions, many enrolled agents business sellers are achieving their sale goals through deliberate sale strategies.
Preparing Family Members
Many sellers embarked on their enrolled agents business sale without adequately considering the impact it will have on their families. Unfortunately, families often experience turmoil during a sale even when the primary owner is convinced it's the right decision. The sale of the business will likely result in new family dynamics. Subsequently, selling an enrolled agents business has to include ample communication and shared decision-making.
Sale Documents
In an enrolled agents business sale, the Letter of Intent contains the vital elements of the deal between the buyer and the seller . The price described in the Letter of Intent may fluctuate based on information that is revealed during due diligence, but the inclusion of new requirements in the final contract could be a deal killer. 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.
Valuation Methods
Professional appraisers can use three methods to determine the value ofan enrolled agents business: The income method, the asset method and the market method. Appraisals based on the asset method gauge value as a factor of the company's real property and non-tangible assets; appraisals based on the income method consider the business's anticipated revenue. Using recent enrolled agents business sales as its foundation, the market method factors market conditions into the valuation process. As a safeguard, consider conducting appraisals using variations of multiple appraisal methods. To drive up your sale price, position your enrolled agents business by improving variables like assets, revenue and profitability during the years leading up to a sale.
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