January 19, 2021  
 
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Selling a Company

 

Selling a Land Contracts Bought and Sold Business

You've invested time, effort, and creativity into building your land contracts bought and sold business. But the hard work isn't done yet. Before you can make a graceful exit, you will have to invest yourself in your business sale.

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?
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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.

Business Assets

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.

More Exit Planning Articles

We think you may find these additional resources to be of interest.

Marketing a Land Contracts Bought and Sold Business

Entrepreneurial Exit Strategies

Renewing Leases Prior to Selling a Business

Pros and Cons of Using Business Brokers


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If you plan on opening a land contracts bought and sold business, these guides will help you get started:

Opening a Land Contracts Bought & Sold Business

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