You won't find any magic formulas for selling a chess instruction business, especially while the market is struggling to overcome the perceptions created by a down economy.
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A business sale is always a sophisticated transaction and if you aren't prepared for it, your chess instruction business sale could have an unexpected outcome. To stay on course, you'll need sound strategy and meticulous execution on your side.
Laying the Groundwork
A successful chess instruction business sale begins with careful planning. Although you are convinced your business has value in the marketplace, the planning process establishes a framework for communicating its value to prospective buyers. Professional business brokers understand buyers and know how to properly communicate a chess instruction business to the marketplace. Financial statements, appraisals, operations manuals and other documents lay the foundation for your chess instruction business sale, creating incentives for prospects to agree to a higher asking price.
You'll need to incorporate the cost of the sale into the calculation the minimum price you are willing to receive for your chess instruction business. Good brokerage takes a 10% success fee off the top of the final sale price. Professional consultations can also represent a significant expense during the course of a chess instruction business sale. Furthermore, your time has value, so you may need to include a personal compensation consideration in your expense estimates.
Selling a Chess Instruction Business to an Employee
Employee sales have pros and cons. A key employee may seem like a natural sales prospect. If you need to sell quickly, the timeframe is condensed in an employee sale because you don't need to track down a buyer. Yet most employees lack the means to buy their employer's business at or near the asking price. A seller-financed deal may be necessary unless the employee has significant assets or investor backing.
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