Niche Exit Planning Strategies
Selling a District Justices Business
Selling a district justices business doesn't happen overnight. It takes a deliberate process to get top dollar for your company.
According to the experts, there is currently a large volume of shadow inventory in the district justices business market -- businesses that are waiting to be listed until the economy recovers.
Despite the conventional wisdom, we believe current economic conditions are right for selling a district justices business. With the right information and strategy, you could be well on your way to a successful sale
Understanding Market Timing
Worried about timing? Believe it or not, this could be an advantageous time to put a district justices business up for sale. A depressed economy means lower interest rates; lower interest rates increase the number of investors willing to take a chance on district justices businesses. As the interest rates rise, it will be more difficult for buyers to make the numbers work in their favor. At Gaebler, we recognize the value of timing the sale of your district justices business. But we think it's more important to properly position your business for current market conditions -- whatever they may be.
Sale Documents
In a district justices business sale, the Letter of Intent contains the vital elements of the deal between the buyer and the seller . If you are seeking buyer concessions, the time to address them is before the Letter of Intent is drafted. So after consulting with your broker and attorney, make sure you're comfortable with the terms of the Letter of Intent. If not, everything you do to close the sale of your district justices business may be a waste of time.
Seller Financing
The shortage in today's marketplace isn't interested buyers -- it's capital. Banks and other lending institutions aren't eager to lend to unproven and undercapitalized district justices 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.
Share this article
Additional Resources for Entrepreneurs