Business sellers sometimes face a long, hard struggle to get fair market value for their companies. But with the adequate preparation, your geriatric nursing home can attract buyers who recognize its potential.
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At Gaebler, we think that's a mistake because with adequate preparation and the right sale strategy, this might be the best time to put your geriatric nursing home on the market.
The calculation of your asking price should include a buffer to cover the expense of the sale process. 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 geriatric nursing home sale. If you need to compensate employees to assist with the sale, their services should also be considered.
When to End Negotiations
If the devil is in the details, the negotiation stage of a geriatric nursing home sale is the devil's playground. There are countless details that need to be hammered out before a Letter of Intent can be prepared and the process can move on to the due diligence stage. As the seller, you'll be on the front lines of negotiation and will need to know when it's time to bring negotiations to an end. A lull in negotiations may be part of the buyer's strategy. Then again, it may be a sign that the search for common ground is a lost cause. Since it can be difficult to tell whether the buyer is serious or playing games, it's important to know the lower boundaries of your negotiation strategy and be willing to walk away from the negotiation table, if necessary.
There is a lot of work that needs to be done before you're ready to sell your geriatric nursing home. Perhaps the most important pre-sale consideration is to right-size your expectations to the realities of the market. Once your expectations are in the ballpark, you can move on to making your business presentable to prospective buyers.
Given your interest in exit planning and in geriatric nursing homes, you might find these additional resources to be of interest.
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