Niche Exit Planning Tactics
Selling a Wireless Data Services Business
Unfortunately, many sellers are waiting to list their wireless data services businesses until the economy fully rebounds. We think that's a mistake because for the right buyers, wireless data services businesses are a great investment.
You won't find any magic formulas for selling a wireless data services business, especially while the market is struggling to overcome the perceptions created by a down economy.
Too often wireless data services business sellers sell for a price that is well below market value. With the right strategy, your sale doesn't have to end that way.
Equipment and Inventory Concerns
During due diligence, the buyer will undoubtedly conduct his own appraisal of your wireless data services business's 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. A pre-listing appraisal also gives you the opportunity to document the condition of your wireless data services business's assets and possible even make repairs or upgrades to increase the total value of the operation.
Timing the Market
Worried about timing? Believe it or not, this could be an advantageous time to put a wireless data services business up for sale. A depressed economy means lower interest rates; lower interest rates increase the number of investors willing to take a chance on wireless data services businesses. As the interest rates rise, it will be more difficult for buyers to make the numbers work in their favor. So we see market timing as a concern that can be easily mitigated by applying fundamental sales strategies and adequately preparing your company for buyers.
Tips for Working with A Business Broker
Brokerage is a mainstay of the business-for-sale marketplace. It's typical for wireless data services business to rely on brokers to reduce market time and increase the final sales price. However, your broker will still expect you to materially participate in the sale of your business. Successfully brokered sales are based on solid relationships between brokers and sellers as well as the strict execution of a common selling strategy.
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