Selling a legal service plans business? You'll need to be prepared to address a variety of challenges that are common in the business-for-sale marketplace.
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Yet what many sellers don't appreciate is that a down economy can present the perfect opportunity to sell a legal service plans business.
Sale Preparation Timeframes
There are no effective shortcuts for selling a legal service plans business. Since buyers prefer to see evidence of future cash flow, you'll want to to strategically lock in cash flows and increase profits before you list the business. Next, the business will need to be documented in professional financial statements and manuals that facilitate the ownership transition. Since all of this takes time and effort, a legal service plans business can rarely be ready for the marketplace in less than six months. A more likely scenario is that it will take more than a year to create the conditions necessary to receive the maximum sale price.
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 many instances, your accountant will be invaluable in evaluating prospective buyers' financial position and buying capacity.
As a business seller, you have to be at the top of your negotiating game. More often than not, the person with the most knowledge will come out on top in a legal service plans business negotiation. But before you can negotiate effectively, you need to have a clear sense of your minimum sale requirements. If you lack clarity about your goals, you're guaranteed to fall short of achieving of them. Consult with a broker, advisor, or negotiation team to clarify your expectations and devise a negotiation strategy.
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