November 17, 2019  
 
Gaebler.com is a daily online magazine covering small business news. We help entrepreneurs transform ideas and innovations into greatness.

Resources for Entrepreneurs

 

Selling a Company

 

Selling an Auto Warranty Services Business

Selling an auto warranty services business doesn't happen overnight. It takes a deliberate process to get top dollar for your company.

Most business sellers are interested in disposing of their businesses as quickly as possible. But that's not how an auto warranty services business sale works.
(article continues below)

Yet what many sellers don't appreciate is that a down economy can present the perfect opportunity to sell a auto warranty services business.

Sale Documents

A basic understanding of legal requirements is foundational for a successful business sale. Despite the confusion that exists among many sellers, the essentials of the sale are described in the Letter of Intent, a seminal document that is created prior to due diligence . By the time the deal reaches the final contract, many of its features are set in stone. Never sign a Letter of Intent until it has been properly reviewed by your attorney and you are in complete agreement with everything it contains.

Turning the Tables: Buyer Concessions

Sellers aren't the only ones who can make concessions in a business sale. In many instances, sellers can request buyer concessions. Although this scenario frequently plays out around seller financed deals, it's possible to push for a higher sales price or other form of compensation if you agree to mentor the buyer for a specified period of time. You can also choose to exclude certain items like equipment or inventory from the deal if the buyer isn't willing to meet your price expectations. By selling excluded assets on the secondary market, you can compensate for an anemic sale price.

Maintaining Objectivity

Objectivity is a rare commodity in a business sale. Your estimate of your company's worth is probably skewed by your emotions and your close, personal connection to the business. In our experience, the most successful sales are ones in which the seller has made an intentional effort to remain objective and set realistic expectations. A business broker can be a valuable resource in right-sizing your expectations and preparing you for market realities.

More Exit Planning Articles

Ready to learn more? You may find these additional resources to be of interest.

Marketing an Auto Warranty Services Business

Five Tips for Maximizing Your Business Sale Price

Why Hire an Exit Planning Consultant

How to Sell a Business


Conversation Board

It's tough to cover everything there is to know about how to sell an auto warranty services business in a single article. If you have any additional comments or questions, please let us know.


Questions, Comments, Tips, and Advice  Code Image - Please contact webmaster if you have problems seeing this image code
Problem Viewing Image
Load New Code

Hoping to Open an Auto Warranty Services Business?

If starting an auto warranty services business is on your agenda, these guides will help you get started:

Opening an Auto Warranty Services Business

Looking for Auto Warranty Services Business Customers?

If you consider auto warranty services businesses to be sales prospects, this isn't the best resource for you on our site. These helpful guides are more appropriate for you:

Selling to Auto Warranty Services Businesses

Mailing Lists for Auto Warranty Services Businesses

More Business Sale Guides

If you are looking for exit plan advice for a different kind of business, please browse our alphabetical directory of exit planning guides below.

Browse more niche exit planning guides:

 

 

 

 

Additional Resources for Entrepreneurs

Lists of Venture Capital and Private Equity Firms

Franchise Opportunities

Contributors

Business Glossary