Business Exit Planning

Selling a Mergers and Acquisitions Business

Is the economy still a little shaky for a business sale? Sure it is. Yet mergers and acquisitions businesses haven't heard the news and are reporting steady action on the business-for-sale market.

Like it or not, a mergers and acquisitions business sale is a complicated affair, made even more difficult by the emotions associated with leaving a business you've poured your life into. In our experience, a common owner concern is how the sale will affect customers and employees.

Despite the conventional wisdom, we believe current economic conditions are right for selling a mergers and acquisitions business. We'll tell you what you need to know to achieve a successful sale outcome

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 mergers and acquisitions 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.

Maximizing Sales Price

A successful mergers and acquisitions business requires an investment of both time and money. A business broker handles much of the legwork involved in the sale. Solo sellers usually find that it's simply too much to sell their business and lead it at the same time. Subsequently, they settle for less than the business's potential sale price. For a lot reasons, a decision to hire a broker is almost always the right decision, especially for sellers who need to receive top dollar for their mergers and acquisitions businesses.

When Is the Right Time to Sell?

Most business owners know when it's time to exit their company. Some experts are telling mergers and acquisitions business sellers to put their plans on hold until the economy fully rebounds. We aren't nearly as pessimistic about the mergers and acquisitions business marketplace. The inventory of what we consider to be quality mergers and acquisitions businesses is actually low right now and there is room for the right sellers to realize substantial gains with investment-conscious buyers.

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