Exit Planning Tips
Selling a Hospice Services Business
Few entrepreneurs relish the idea of selling a business in a struggling economy. Yet hospice services businesses continue to be sold at a brisk pace, outperforming the sales of many other types of businesses.
Selling a hospice services business? You'll need to be prepared to address a variety of challenges that are common in the business-for-sale marketplace.
But they're also savvy enough to know a good deal when they see it. To sell your hospice services business, you'll need to go the extra mile to prove your company has the potential to deliver steady revenue and a solid ROI.
Business buyers are in a capital crunch. Thanks to more stringent commercial lending requirements, sellers have become de facto lenders, providing the financing buyers need to get their feet in the door. Although 100% seller financing isn't recommended, sellers are financing up to 70% of the sale price to close deals.
Advantages of Hiring a Broker
A good broker can offer several benefits to business sellers. Right out of the gate, brokers know how to help their clients properly prepare their businesses for a sale. Second, a good business broker is a master at confidentiality locating hospice services business sale prospects and guiding sellers through negotiations. Typical brokerage rates (a.k.a. success fees) run 10% of the final price - an expense that is usually recouped through a higher sales price and less time on the market.
Sale Preparations for Your Hospice Services Business
The outcome of a business sale is largely determined prior to a market listing. Profitable hospice services business sales begin with a comprehensive strategy that incorporates planning, preparation and market positioning. Even though it may take years to adequately position your hospice services business, the amount of preparation you perform will have direct correlation on asking and sale prices. It is especially helpful if your financial reports can demonstrate a multiyear growth trend for potential buyers.
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