Sell a Business for the Best Price
Selling a Phone Card Business
Few entrepreneurs relish the idea of selling a business in a struggling economy. Yet phone card businesses continue to be sold at a brisk pace, outperforming the sales of many other types of businesses.
You won't find any magic formulas for selling a phone card business, especially while the market is struggling to overcome the perceptions created by a down economy.
A business sale is always a sophisticated transaction and if you aren't prepared for it, your phone card business sale could have an unexpected outcome. To stay on course, you'll need sound strategy and meticulous execution on your side.
Turning the Tables: Buyer Concessions
Sellers aren't the only ones who can make concessions in a business sale. In many instances, sellers can request buyer concessions. Although this scenario frequently plays out around seller financed deals, it's possible to push for a higher sales price or other form of compensation if you agree to mentor the buyer for a specified period of time. You can also choose to exclude certain items like equipment or inventory from the deal if the buyer isn't willing to meet your price expectations. By selling excluded assets on the secondary market, you can compensate for an anemic sale price.
When the Sale Goes Off-Course
It's not uncommon for the owners of small phone card businesses to adopt a go-it-alone sale strategy. Plenty of owners sell their phone card businesses unassisted. Without brokerage, the risk of your sale going off-course is increased. 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 phone card business is priced out of the market. The remedy is professional brokerage or a consultation with more experienced sellers.
Average Preparation Time
It's critical to properly plan for the sale ofa phone card business. Buyers want to see growth trends, healthy profits and other variables that increase the likelihood of long-term success. Additionally, prospective buyers usually request documentation that allows them to understand the business's daily workflows and operational strategy. Since all of this takes time and effort, a phone card 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.
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