Selling a Business Advice
Selling an Incorporation Services Business
We hear from a lot of business owners who are timid about listing their incorporation services business. Despite the mood of the market, we think there are still opportunities to receive a good price for your incorporation services business. Here's what you need to know . . .
Dire economic forecasts have forced many incorporation services business sellers into hibernation. Instead of listing their companies now, they're hanging back until they see signs of an economic recovery.
Does that mean selling your incorporation services business will be a piece of cake? No -- but you might be surprised to learn that the incorporation services businesses that are selling these days are finding success though simple, common sense selling strategies.
Sale Preparation Timeframes
There are no effective shortcuts for selling an incorporation services business. Since buyers prefer to see evidence of future cash flow, you'll want to to strategically lock in cash flows and increase profits before you list the business. Next, the business will need to be documented in professional financial statements and manuals that facilitate the ownership transition. Since all of this takes time and effort, a incorporation services business can rarely be ready for the marketplace in less than six months. A more likely scenario is that it will take more than a year to create the conditions necessary to receive the maximum sale price.
Negotiation 101
As a business seller, you have to be at the top of your negotiating game. More often than not, the person with the most knowledge will come out on top in an incorporation services business negotiation. But before you can negotiate effectively, you need to have a clear sense of your minimum sale requirements. If you lack clarity about your goals, you're guaranteed to fall short of achieving of them. If you aren't sure what you need, put negotiations on hold until you gain a clearer understanding of your own deal parameters.
Post-Sale Details
The way you exit your incorporation services business is just as important as the way you sell it. Handing over the keys and saying goodbye to your employees is easier said than done, and requires thoughtful consideration prior to closing. You, your employees and the buyer all have a stake in making sure the sale ends as smoothly as possible. If possible, work with the buyer to create a transition strategy that minimizes the impact on the business and your workforce.
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