Personal and professional concerns surround the sale of a land contracts bought and sold business. But have you considered how your customers, vendors and employees will handle the sale?
(article continues below)
Undaunted by economic conditions, many land contracts bought and sold business sellers are achieving their sale goals through deliberate sale strategies.
Broker vs. No Broker
When selling a land contracts bought and sold business, you have two choices: Hire a broker to facilitate the sale or perform the sale unassisted. Although brokerage fees can be substantial, the right broker can reduce the amount of time your land contracts bought and sold business sits on the market. You can also expect to receive a higher sales price for your business in a broker-assisted deal.
During due diligence, the buyer will undoubtedly conduct his own appraisal of your land contracts bought and sold business's physical assets. Most sellers, however, conduct a pre-sale appraisal to gain an accurate gauge of asset value prior to negotiations. Without an accurate assessment of asset values it's impossible to intelligently negotiate on price. When you conduct your appraisal of your assets, note their condition and include it in the information packet you prepare for prospective buyers.
Sale Preparation Timeframes
There are no effective shortcuts for selling a land contracts bought and sold business. Since buyers prefer to see evidence of future cash flow, you'll want to to strategically lock in cash flows and increase profits before you list the business. You'll also need to create financial reports, operations manuals, and other documents to create the perception of a turnkey land contracts bought and sold business operation. Since all of this takes time and effort, a land contracts bought and sold business can rarely be ready for the marketplace in less than six months. If you can afford to wait, we recommend investing a few years in improving your business's financial position before you put it on the market.
We think you may find these additional resources to be of interest.
If you plan on opening a land contracts bought and sold business, these guides will help you get started:
If you want information on how to sell to land contracts bought and sold businesses, there's more applicable information for you elsewhere on our site. Try these useful resources instead:
If you are looking for exit plan advice for a different kind of business, please browse our alphabetical list exit planning guides below.