Optimizing Business Exits
Selling a Retirement Housing Business
With the economy limping along, many retirement housing business owners are hesitant to put their businesses on the market. Don't be deterred by economic uncertainty. There are plenty of reasons why this is the right time to put your retirement housing business on the market.
Business sellers sometimes face a long, hard struggle to get fair market value for their companies. But with the adequate preparation, your retirement housing business can attract buyers who recognize its potential.
It may require a little finesse, but if you're prepared to take the next step in your entrepreneurial career then it's time to brave the retirement housing business market and locate potential buyers ASAP.
Preparing for What's Next
So you've decided to sell your retirement housing business. That's great -- but have you considered what's next? Are you moving on to another business venture? Are you retiring? many sellers find themselves ill-equipped to handle life after their business and fail to understand that their future plans can influence the sale process. We frequently encounter business sellers who haven't thought enough about their futures to know whether certain concessions (e.g seller financing) are a real possibility. As a result, they make bad decisions during the sale and experience less-than-optimal outcomes.
Signs You're in Over Your Head
Many retirement housing business are tempted to save brokerage fees by selling their businesses on their own. But for every successful unassisted sale, several other retirement housing businesses sell below market value or languish on the market for years without attracting the interest of qualified buyers. As a rule, no business should sit on the market for more than six months without attracting the interest of at least a handful of qualified buyers. Lack of buyer enthusiasm or persistence indicates that something is wrong. The remedy is professional brokerage or a consultation with more experienced sellers.
Family Business Sale Tips
The idea of passing a business along to a family member sounds idyllic to many business owners. in reality, a family-based retirement housing business sale can be more complicated than selling to a stranger. Often, a sale to a family member creates fractures within the family. Whether you offer the family member special concessions or not, either the buyer or other family members may take offense. If possible, discuss a long-term, generational transition with the entire family and seek the advice of a professional consultant.
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