How to Sell a Niche Market Business
Selling an Estate Planning and Administration Business
Market shifts affect business values and the estate planning and administration business industry has seen more than its share of fluctuations in business values. Many sellers have exited their companies under less-than-ideal circumstances. Yet it's still possible to achieve personal and professional goals when selling an estate planning and administration business during challenging economic times.
We're seeing a high volume of shadow inventory in the business-for-sale market.
However, serious buyers also understand the value of a good estate planning and administration business. To sell your estate planning and administration business, you'll need to go the extra mile to prove your company has the potential to deliver steady revenue and a solid ROI.
Valuation Methods
The methods for valuing an estate planning and administration business vary according to your business model and circumstances. However, there are generally three valuation methods appraisers use to determine your company's worth. The income method determines value based on the amount of income the business is expected to generate. The asset method, on the other hand, is based on the value of tangible and non-tangible assets (e.g. brands and trademarks). Finally, the market method determines the worth of your estate planning and administration business based on the sales of similar businesses in your geographic area. A good appraiser will often use multiple valuation methods to arrive at a reasonable estimate. Sellers should take note of the fact that all three valuation methods reward businesses that takes steps to increase assets and income.
Finding Prospects
Many sellers don't realize how many prospective buyers there are for their businesses. We frequently see qualified buyers emerge from the seller's network of business and personal acquaintances. In other cases, sellers take a proactive approach to finding likely buyers and contacting them directly. If you aren't generating interest in the general marketplace, consider approaching companies that sell complementary products or are closely situated in your supply chain.
Post-Sale Details
As your estate planning and administration businesssale nears completion, there is a lot of work remaining to be done. The transition to the new owner, the distribution of sale proceeds and other issues can weigh heavily on sellers. If there are pending details that still need to ironed out, address them ASAP to ensure a smooth closing and transition.
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