Most business sellers are interested in disposing of their businesses as quickly as possible. But that's not how a payroll services and systems business sale works.
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If your exit strategy involves selling a payroll services and systems business in this environment, sellers need to make a strong case for buyers to purchase at or near the asking price.
It's incumbent on buyers to commission their own appraisal of your payroll services and systems business's inventory, equipment, and physical assets. Most sellers, however, conduct a pre-sale appraisal to gain an accurate gauge of asset value prior to negotiations. A professional appraisal is a necessity because it gives you the information you need to negotiate a sale price. During your appraisal process, you should also note the condition of your assets. Cost-effective repairs can then be made before your list your payroll services and systems business.
Dealing with Your Emotions
There is no easy way to say goodbye to your business. You probably have good reasons for selling your payroll services and systems business now, but that doesn't make the emotions you will experience any easier. Instead of feeling guilty about your emotions, take the time to process them with a mentor or friend. But since it's important to remain as objective and rational as possible, we also recommend establishing a firm sale strategy and negotiation team to limit the impact of your personal feelings on the sale outcome.
It's obvious that you're going to need to hire an attorney to finalize the sale of your payroll services and systems business. A good lawyer serves a variety of functions during the process. In addition to reviewing the letter of intent, sales contract, and other documents, your attorney should be capable of advising you about due diligence and the tax consequences of the sale. In some cases, an attorney may also provide assistance in securing long-term leases or vendor contracts to make your payroll services and systems business more attractive to buyers. If you don't know an attorney with experience in the business-for-sale market, ask your broker for a referral.
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