Niche Market Exit Planning Tips
Selling a Billing Services Business
Few entrepreneurs relish the idea of selling a business in a struggling economy. Yet billing services businesses continue to be sold at a brisk pace, outperforming the sales of many other types of businesses.
Most business sellers are interested in disposing of their businesses as quickly as possible. But that's not how a billing services business sale works.
You'll always have an excuse for not putting your business on the market. Selling a billing services business isn't easy, but we believe sellers can achieve their goals in any economic environment.
Preparing Your Billing Services Business for Sale
First-time business sellers sometimes don't realize that the success or failure of their sale is determined before it hits the market. Profitable billing services business sales begin with a comprehensive strategy that incorporates planning, preparation and market positioning. Even though it may take years to adequately position your billing services business, the amount of preparation you perform will have direct correlation on asking and sale prices. But your efforts to improve your company's position and profitability will only be effective if you invest similar effort into the preparation of accurate financial statements for buyers.
In the current marketplace, seller concessions can make the difference between a business sale and a billing services business that languishes on the market for months or even years. The most common seller concession is seller financing. Traditional lenders and investors are gun shy - and that makes sellers a logical funding source for many buyers. If you are unwilling or unable to offer financing, be prepared to offer other types of concessions to close the deal.
It's obvious that you're going to need to hire an attorney to finalize the sale of your billing services business. Competent legal counsel ensures that the sale documents are in proper order. Furthermore, a good lawyers provides the counsel necessary to navigate the tax and liability issues that surround a business sale. In some cases, an attorney may also provide assistance in securing long-term leases or vendor contracts to make your billing services business more attractive to buyers. If you don't know an attorney with experience in the business-for-sale market, ask your broker for a referral.
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