December 4, 2020  
 
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Selling a Cancer Insurance Company

The decision to sell your cancer insurance business isn't something that should be taken lightly, especially these days. If a business exit is on the horizon, you'll want to check out our suggestions for staying ahead of the market.

Personal and professional concerns surround the sale of a cancer insurance business. But have you considered how your customers, vendors and employees will handle the sale?
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If your exit strategy involves selling a cancer insurance business these days, business sellers may need to apply a combination of incentives and techniques.

What About Market Conditions?

No one plans to sell a cancer insurance business in a down economy. So far, government intervention and promises that the economy is slowly recovering haven't been enough to alleviate many entrepreneur's fears. Despite the risks, sellers need to be cognizant of the fact that there is a large volume of cancer insurance 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 cancer insurance business as attractive as possible so to buyers right now.

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 . If you are seeking buyer concessions, the time to address them is before the Letter of Intent is drafted. 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.

Valuation Methods

Professional appraisers can use three methods to determine the value ofa cancer insurance business: The income method, the asset method and the market method. While the income method uses anticipated revenues as a value basis, the asset method focuses on the company's capital, real estate and intellectual assets. Finally, the market method determines the worth of your cancer insurance business based on the sales of similar businesses in your geographic area. A good appraiser will often use multiple valuation methods to arrive at a reasonable estimate. But regardless of the method that is used, it's always in the seller's best interest to increase revenue and asset values prior to a sale.

More Info on Business Transitions and Related Articles

Given your interest in exit planning and in cancer insurance businesses, you might find these additional resources to be of interest.

Marketing a Cancer Insurance Company

Why Most Businesses Do Not Have Exit Plans

Renewing Leases Prior to Selling a Business

Why Hire an Exit Planning Consultant


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