Selling an apprenticeships business isn't as simple as listing a power tool on eBay. These days, the business-for-sale market is a hostile place for inexperienced and uninformed sellers.
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However, serious buyers also understand the value of a good apprenticeships business. So for apprenticeships business sellers, today's market is all about convincing buyers that the numbers make their companies worth the asking price.
Current Market Conditions
No one plans to sell an apprenticeships business in a down economy. Although the economy is gaining steam, recovery is slow and entrepreneurs are holding their cards close to their vests. Despite the risks, sellers need to be cognizant of the fact that there is a large volume of apprenticeships businesses waiting to be listed until the economy rebounds. When that happens, the buyers' market will become even stronger and have a negative impact on prices. So what's our point? The economy isn't the most important factor in the sale of your business. Instead, you should be focusing on making your apprenticeships business as attractive as possible so to buyers right now.
Working with Appraisers
An experienced appraiser is part and parcel of a successful apprenticeships business sale. Leading industry appraisers equip sellers with a value gauge that can be accessed during negotiations. If you're disappointed with the appraiser's estimate of your company's worth, you have the option of seeking a second opinion. However, it's more often the case that you will need to adjust your expectations of your business's value to buyers.
Capital is hard to come by these days. Thanks to more stringent commercial lending requirements, sellers have become de facto lenders, providing the financing buyers need to get their feet in the door. Although 100% seller financing isn't recommended, sellers are financing up to 70% of the sale price to close deals.
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