The economy isn't the only thing that is uncertain these days. So are asset management business buyers, many of whom are waiting to pull the trigger on their next acquisition.
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The economy hasn't squashed the market for asset management businesses. Like always, unprofitable and poorly positioned businesses struggle to find buyers while sellers who have invested time and effort to prepare their sale are being rewarded in the marketplace.
The sale of an asset management business can be a rollercoaster of emotions. One minute you'll be elated at the possibility of moving on the next stage of your life and the next minute you'll be nostalgic about the memories of your time at the helm of your business. The emotions of a sale are complicated by the fact that it may take time to locate the right buyer and the final sale price may be less than you think your asset management business is worth. Although it isn't easy, you can mitigate the emotional impact of an asset management business sale by setting realistic expectations before you list your business.
An experienced appraiser is part and parcel of a successful asset management 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.
Team-Based Negotiation Strategies
It's not unusual for asset management business sellers to feel overwhelmed when they negotiate the sale of their business. A solo negotiation is a surefire way to may a tough job even tougher. A negotiation team comprised of trusted advisors and senior business leaders is essential in helping you devise a winning negotiation strategy. More importantly, a negotiation team can serve as a sounding board -- an objective presence that prohibits your personal emotions from clouding your judgment or sabotaging your efforts to negotiate a successful deal.
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