Exit Planning Tips

Selling a Health Maintenance Organizations Business

It's a misconception that no one is buying health maintenance organizations businesses these days. Savvy entrepreneurs see health maintenance organizations business opportunities as a path to short-term profits and long-term growth. There aren't any guarantees, but if you adhere to fundamental business sale concepts, you can likely get a good price for your business.

Business buyers are a timid lot, even more so now that they are facing an uncertain economic landscape.

The economy hasn't squashed the market for health maintenance organizations businesses. Not surprisingly, buyers expect to receive value for their dollars - and that means sellers need to demonstrate that their businesses are capable of delivering anticipated returns.

When to End Negotiations

If the devil is in the details, the negotiation stage of a health maintenance organizations business sale is the devil's playground. But sooner or later, someone needs to bring negotiations to a close. Unfortunately, that responsibility often falls on the seller. In a health maintenance organizations business sale, a stalled negotiation can be an indication that the deal is dead. At this point in the process, an awareness of negotiation parameters really pays off. If the buyer is unwilling to accept your minimum demands, it's time to end negotiations and move on to the next prospect.

Selling Time

Hoping for a quick health maintenance organizations business sale? You may be disappointed. Although asking price and other factors contribute to sale time, it's difficult to predict how long your business will be on the market before you locate the right buyer. To adequately prepare your business listing, plan on spending six months to a year prior to listing. In a good market, an attractive health maintenance organizations business can sell in as little as a few months, although it can take more than a year to find the right buyer after the business is listed.

Hiring an Attorney

It's obvious that you're going to need to hire an attorney to finalize the sale of your health maintenance organizations business. Competent legal counsel ensures that the sale documents are in proper order. Furthermore, a good lawyers provides the counsel necessary to navigate the tax and liability issues that surround a business sale. We recommend hiring an attorney early in the process to gain insights about the legal consequences of various sale outcomes.

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