Selling a Business Advice
Selling an Insurance Underwriters Business
Few entrepreneurs relish the idea of selling a business in a struggling economy. Yet insurance underwriters businesses continue to be sold at a brisk pace, outperforming the sales of many other types of businesses.
Dire economic forecasts have forced many insurance underwriters business sellers into hibernation. Instead of listing their companies now, they're hanging back until they see signs of an economic recovery.
A business sale is always a sophisticated transaction and if you aren't prepared for it, your insurance underwriters business sale could have an unexpected outcome. To stay on course, you'll need sound strategy and meticulous execution on your side.
Working with Accountants
Accountants lay the financial groundwork for a business sale. From a seller perspective, an accountant can offer personal financial assistance, especially when it comes to handling the disposition of sale proceeds. Brokers often advise their clients to have an accountant perform an audit of the business prior to sale. In certain instances, it may be appropriate to ask your accountant to vet the financials of prospective buyers, run credit checks or even structure the terms of a seller-financed deal.
Seller Financing
Capital is hard to come by these days. Banks and other lending institutions aren't eager to lend to unproven and undercapitalized insurance underwriters business buyers regardless of the business's potential. Rather than abandon their plans entirely, many buyers are pursuing finance concessions from sellers. Although 100% seller financing isn't recommended, sellers are financing up to 70% of the sale price to close deals.
Preparing Your Insurance Underwriters Business for Sale
The outcome of a business sale is largely determined prior to a market listing. Attractive insurance underwriters business sales opportunities leverage a long-term strategy to increase the value of the business to buyers. Even though it may take years to adequately position your insurance underwriters business, the amount of preparation you perform will have direct correlation on asking and sale prices. But your efforts to improve your company's position and profitability will only be effective if you invest similar effort into the preparation of accurate financial statements for buyers.
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