In any economy, there is a right way and a wrong way to sell a business.
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Does that mean selling your malpractice law firm will be a piece of cake? No -- but you might be surprised to learn that the malpractice law firms that are selling these days are finding success though simple, common sense selling strategies.
Current Market Conditions
Today's malpractice law firm sellers face an intimidating economic landscape. Entrepreneurs and investors still exhibit healthy skepticism, despite initial indication that recovery has begun. But when the economy fully rebounds, a shadow inventory of malpractice law firms will flood the market and drive prices down even further. The simple truth is that the economy shouldn't dictate whether or not now is the right time to sell a malpractice law firm. Your individual circumstances and personal goals are more influential factors in determining when it's time to put your business on the market.
Capital is hard to come by these days. Banks and other lending institutions aren't eager to lend to unproven and undercapitalized malpractice law firm buyers regardless of the business's potential. Rather than abandon their plans entirely, many buyers are pursuing finance concessions from sellers. Although 100% seller financing isn't recommended, sellers are financing up to 70% of the sale price to close deals.
Working with a Professional Accountant
Accountants lay the financial groundwork for a business sale. Most malpractice law firm have significant tax consequences requiring the input of a qualified accountant. Brokers often advise their clients to have an accountant perform an audit of the business prior to sale. With seller financing becoming common, professional accountants are playing a more central role in negotiations and buyer qualification.
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