You survived all the ups and downs of owning a business. Next, you'll need to prepare yourself to address the rigors of selling a credit management services business.
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In order to market a credit management services business now, sellers need to make a strong case for buyers to purchase at or near the asking price.
The way you exit your credit management services business is just as important as the way you sell it. The transition to the new owner, the distribution of sale proceeds and other issues can weigh heavily on sellers. If there are pending details that still need to ironed out, address them ASAP to ensure a smooth closing and transition.
Multiple valuation methods exist for a credit management services business. 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. In many sales, the most accurate valuation comes from the market method which determines value based on the recent sales of similar businesses. A good appraiser will often use multiple valuation methods to arrive at a reasonable estimate. Sellers should take note of the fact that all three valuation methods reward businesses that takes steps to increase assets and income.
Preparing for What's Next
The decision to sell your credit management services business can't be made without adequate consideration of what will happen after the sale. many sellers find themselves ill-equipped to handle life after their business and fail to understand that their future plans can influence the sale process. We frequently encounter business sellers who haven't thought enough about their futures to know whether certain concessions (e.g seller financing) are a real possibility. As a result, they make bad decisions during the sale and experience less-than-optimal outcomes.
Given your interest in exit planning and in credit management services businesses, you might find these additional resources to be of interest.
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