Selling a Business Advice
Selling an Insurance Information and Referral Services Business
Don't believe anyone who tells you it's easy to sell an insurance information and referral services business. A lot of things need to happen before you can successfully exit your business. But with a few tips, you can keep your shirt and your sanity in the sale of your business.
Selling an insurance information and referral services business isn't as simple as listing a power tool on eBay. These days, the business-for-sale market is a hostile place for inexperienced and uninformed sellers.
Fortunately for sellers, forward-thinking entrepreneurs continue to be attracted to insurance information and referral services businesses that exhibit strong financials and potential for future growth.
How to Work with Business Brokers
Business brokers are professional business sellers. Brokers routinely work with insurance information and referral services business owners to achieve desired outcomes and deliver a successful sale as quickly as possible. But a good broker doesn't relieve your responsibility for contributing to the sale process. Like it or not, you are going to be an integral player in the sale of your insurance information and referral services business. Establish clear lines of communication with your broker and respond quickly to requests from prospective buyers. You should also assist your broker in listing your insurance information and referral services business on BizBuySell.com and other online business-for-sale sites.
Valuation Methods
Professional appraisers can use three methods to determine the value ofan insurance information and referral services business: The income method, the asset method and the market method. While the income method uses anticipated revenues as a value basis, the asset method focuses on the company's capital, real estate and intellectual assets. In many sales, the most accurate valuation comes from the market method which determines value based on the recent sales of similar businesses. 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.
Advertising Your Sale
The best insurance information and referral services business sales listings are intentionally promoted to the right prospects. But confidentiality issues are a hurdle you'll need to address before you put your insurance information and referral services business on the market. If sale information leaks out, competitors can use it to steal customers and circulate negative messages about your business throughout the industry. The best way to advertise an insurance information and referral services business is to enlist the assistance of a business broker who is skilled in locating and contacting prospective buyers.
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