We're seeing a high volume of shadow inventory in the business-for-sale market.
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If you're ready to move on, now is the right time to sell your software consultants business.
Objectivity is a rare commodity in a business sale. You have invested yourself in making your software consultants business the success it is today, but in the eyes of prospective buyers, your operation is only worth fair market value. Although it may be a hard pill to swallow, you need to find a way to introduce objectivity into your sale. Consider recruiting a team of objective professionals to help manage your expectations as you prepare and negotiate the sale of your business.
Working with a Professional Accountant
Accountants lay the financial groundwork for a business sale. Before your software consultants business goes on the market, you should sit down with your accountant to clarify your financial goals and the tax consequences of a sale. Brokers often advise their clients to have an accountant perform an audit of the business prior to sale. With seller financing becoming common, professional accountants are playing a more central role in negotiations and buyer qualification.
Dealing with Buyers
It's a common scenario: in an effort to perform a thorough due diligence process, buyers flood software consultants business sellers with questions and requests, often to the point of becoming a nuisance. The questions software consultants business ask during due diligence are designed to alleviate their concerns about the business and should be promptly addressed by the seller. Avoid answering buyer concerns with vague generalities. Instead, be as specific as possible, even if it means doing additional research before offering a response. Refer to the Letter of Intent to determine how to wrap up due diligence and move the buyer on to closing.
Given your interest in exit planning and in software consultants businesses, you might find these additional resources to be of interest.
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