Business-for-sale markets are less dependent on economic conditions than most sellers think they are.
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Eventually, it will the time will come to exit your business. As a consequence, you have a substantial stake in knowing how to receive maximum price for your loan brokerage business.
Emotions run high during the sale of a loan brokerage business. Your estimate of your company's worth is probably skewed by your emotions and your close, personal connection to the business. Although it may be a hard pill to swallow, you need to find a way to introduce objectivity into your sale. A business broker can be a valuable resource in right-sizing your expectations and preparing you for market realities.
Signs You're in Over Your Head
The loan brokerage business-for-sale marketplace is a mixed bag of brokered sales and solo efforts. But for every successful unassisted sale, several other loan brokerage businesses sell below market value or languish on the market for years without attracting the interest of qualified buyers. Generally, listed businesses should generate interest within a few months. Likewise, if buyers seem to express interest but quickly exit when you quote the asking price, it's a sign that your loan brokerage business is priced out of the market. The remedy is professional brokerage or a consultation with more experienced sellers.
Preparing Your Employees
As a business owner, you want to keep you employees informed about your plans; as a seller it's in your best interest to keep your employees in the dark for as long as possible. On the one hand, confidentiality is critical for a successful loan brokerage business sale. However, the longer the selling process drags on, the more likely it is that rumors will begin to circulate throughout your workforce. When that happens, it's best to have a frank conversation with your team rather than allowing rumors to circulate through the organization. Maintain a positive tone in your conversations and answer your employees questions as completely as you can without jeopardizing the sale.
Given your interest in exit planning and in loan brokerage businesses, you might find these additional resources to be of interest.
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