Exit Planning Tips
Selling a Home Warranty Plans Business
Forget about what you read in the paper -- home warranty plans businesses are being sold everyday and the business-for-sale market is poised for even greater growth in the months ahead.
When the economy recovers, we expect to see a sudden influx of home warranty plans businesses in the business-for-sale marketplace. Although these companies have been for sale, their owners have resisted listing them until a better economy materializes.
Most home warranty plans businesses are good business opportunities, a fact that is not going unnoticed by today's discerning buyers.
Finding Home Warranty Plans Business Buyers
Buyers of home warranty plans businesses run the gamut. Some are seasoned home warranty plans business veterans interested in expanding their operation or adding a new location. Others are first-time entrepreneurs with a taste for the small business lifestyle. To cover all your bases, you'll need to conduct a broad buyer search process. That means listing your home warranty plans business in trade-specific directories as well as general business-for-sale databases. Networking is another useful tool in locating buyers. It might surprise you to learn how many home warranty plans business buyers emerge from conversations with peer groups, vendors, and business associations. In some cases, leads obtained through networking are preferred because they come with personal recommendations.
Finding Prospects
Many sellers don't realize how many prospective buyers there are for their businesses. We frequently see qualified buyers emerge from the seller's network of business and personal acquaintances. In other cases, sellers take a proactive approach to finding likely buyers and contacting them directly. If possible, steer clear of selling to a competitor if for no other reason than the fact that competitors pay less for home warranty plans businesses than other buyers.
Sale Documents
In a home warranty plans 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. For sellers, that makes a close review of the Letter of Intent more than a formality - it's a critical juncture on the path to closing.
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