Niche Exit Planning Strategies
Selling a Disability Insurance Business
Market shifts affect business values and the disability insurance business industry has seen more than its share of fluctuations in business values. Here's what you'll need to know to sell a disability insurance business in the current economic environment.
Economic data is scary stuff for small business owners. But quarterly data dumps don't impact disability insurance business sales nearly as much as sale strategy.
Yet what many sellers don't appreciate is that a down economy can present the perfect opportunity to sell a disability insurance business.
Identifying Serious Buyers
Unfortunately, many of the prospects you will encounter aren't serious buyers. 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. It's likely that non-serious buyers will want to know everything about your disability insurance business during their initial inquires. Avoid releasing details about your disability insurance business until you have established that they have the financial capacity to make a legitimate offer.
Maintaining Objectivity
For most owners, the hardest part of selling a disability insurance business is remaining objective. Sellers typically overvalue their companies compared to the rest of the marketplace. Although it may be a hard pill to swallow, you need to find a way to introduce objectivity into your sale. Consider recruiting a team of objective professionals to help manage your expectations as you prepare and negotiate the sale of your business.
Working with Appraisers
An experienced appraiser is part and parcel of a successful disability insurance business sale. Leading industry appraisers equip sellers with a value gauge that can be accessed during negotiations. If you're disappointed with the appraiser's estimate of your company's worth, you have the option of seeking a second opinion. However, it's more often the case that you will need to adjust your expectations of your business's value to buyers.
Share this article
Additional Resources for Entrepreneurs