Exit Planning Tips
Selling a Human Resource Consultants Business
Despite the pessimistic mood of many sellers, your human resource consultants business can be a high value acquisition target for ambitious entrepreneurs -- even in today's tough economy.
When the economy recovers, we expect to see a sudden influx of human resource consultants businesses in the business-for-sale marketplace. Although these companies have been for sale, their owners have resisted listing them until a better economy materializes.
Although we understand why sellers are hesitant, we're also seeing enough business sales to know that if you want to sell a human resource consultants business, you can - even in today's economy. We'll tell you what you need to know to achieve a successful sale outcome
Preparing Family Members
Many sellers embarked on their human resource consultants business sale without adequately considering the impact it will have on their families. In many cases, we find that even though business owners are equipped to handle their ownership exit, their family members are having a hard time letting go of the business, especially if family life has revolved around the demands of the human resource consultants business. The sale of the business will likely result in new family dynamics. The decision to sell a human resource consultants business should allow opportunities for all family members to share their feelings and offer input about the sale process.
Professional appraisers can use three methods to determine the value ofa human resource consultants business: The income method, the asset method and the market method. The income method determines value based on the amount of income the business is expected to generate. The asset method, on the other hand, is based on the value of tangible and non-tangible assets (e.g. brands and trademarks). In many sales, the most accurate valuation comes from the market method which determines value based on the recent sales of similar businesses. All three methods have multiple variations and it's not uncommon for appraisers to use a combination of the three to determine the value of your business. Sellers should take note of the fact that all three valuation methods reward businesses that takes steps to increase assets and income.
Maximizing Sales Price
There are no simple ways to sell a human resource consultants business. If you don't know what you're doing, your business could languish on the market for months or even years. A business broker handles much of the legwork involved in the sale. If you try to sell your business without a broker, your time will be consumed by the details of the sale. Subsequently, you'll be distracted from the demands of your auto supply store, business will suffer, and the sale price you receive for your company will be dramatically reduced. For a lot reasons, a decision to hire a broker is almost always the right decision, especially for sellers who need to receive top dollar for their human resource consultants businesses.
Share this article
Additional Resources for Entrepreneurs