Business Exits By Industry
Selling a Cash Cards Business
You've learned a lot during your tenure as a cash cards business owner. Now the trick is to convince cautious buyers that your operation is worth the asking price.
You survived all the ups and downs of owning a business. Next, you'll need to prepare yourself to address the rigors of selling a cash cards business.
In today's market, there is still plenty of room for cash cards businesses that demonstrate solid earning capacity and a robust market position.
Sale Costs
You'll need to incorporate the cost of the sale into the calculation the minimum price you are willing to receive for your cash cards business. Good brokerage takes a 10% success fee off the top of the final sale price. Attorneys, accountants and appraisers work for a flat fee that can range from hundreds to thousands of dollars. Furthermore, your time has value, so you may need to include a personal compensation consideration in your expense estimates.
Preparing for What's Next
The decision to sell your cash cards business can't be made without adequate consideration of what will happen after the sale. If you aren't sure what's next, you could be in trouble because future plans and selling strategy are inextricably connected. We frequently encounter business sellers who haven't thought enough about their futures to know whether certain concessions (e.g seller financing) are a real possibility. As a result, they make bad decisions during the sale and experience less-than-optimal outcomes.
Identifying Serious Buyers
If you haven't sold a business before, prepare to be overwhelmed by tire kickers -- seemingly interested buyers who lack the capacity, ability or desire to actually purchase your cash cards business. As a seller, it's important to separate the tire kickers from the serious buyers as soon as possible. Each tire kicker is an investment of time and energy that could be poured into finding a more qualified prospect. Your business broker can offer insights about how to quickly spot tire kickers. Never provide detailed information about your cash cards business until the prospect has been qualified as a serious buyer.
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