The broadband services business-for-sale marketplace is a nuanced environment, full of pitfalls for sellers who aren't prepared for its demands.
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Fortunately for sellers, forward-thinking entrepreneurs continue to be attracted to broadband services businesses that exhibit strong financials and potential for future growth.
In a broadband services business sale, the Letter of Intent contains the vital elements of the deal between the buyer and the seller . The price described in the Letter of Intent may fluctuate based on information that is revealed during due diligence, but the inclusion of new requirements in the final contract could be a deal killer. For sellers, that makes a close review of the Letter of Intent more than a formality - it's a critical juncture on the path to closing.
Hoping for a quick broadband services business sale? You may be disappointed. The amount of time your business will be on the market depends on how aggressively it is priced and marketed. Before you can list your broadband services business, you'll need to invest as much as a year in preparing it for prospective buyers. Even though it's conceivable that an attractive opportunity could sell in weeks, an immediate flood of offers could indicate that the business is underpriced.
Capital is hard to come by these days. Banks and other lending institutions aren't eager to lend to unproven and undercapitalized broadband services business buyers regardless of the business's potential. Rather than abandon their plans entirely, many buyers are pursuing finance concessions from sellers. Although 100% seller financing isn't recommended, sellers are financing up to 70% of the sale price to close deals.
Given your interest in exit planning and in broadband services businesses, you might find these additional resources to be of interest.
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