Business Exit Planning
Selling a Mortgage Service Bureaus Business
Most businesses are susceptible to economic conditions and mortgage service bureaus businesses are no exception. But in some cases, a down economy can actually improve saleability. All it takes is a strategy to identify solid prospects and convert them to buyers.
Personal and professional concerns surround the sale of a mortgage service bureaus business. In our experience, a common owner concern is how the sale will affect customers and employees.
More than a few mortgage service bureaus business sellers fail to receive fair market value for their businesses. That's unfortunate because all it takes to get a fair price in today's market is ample planning and an awareness of what's important to buyers.
Team-Based Negotiation Strategies
Business sellers are sometimes surprised to find themselves in the position of negotiator-in-chief. When you sell your mortgage service bureaus business, your business brokers may or may not be willing to conduct negotiations for you. Negotiation is a chess game, best played with the resources and backend support of a negotiation team. By enlisting the assistance of a negotiation team (senior leaders, experienced negotiators, etc.), you can improve the quality of your negotiation strategy and position yourself to receive top dollar for your mortgage service bureaus business.
Understanding Market Timing
Now may be the best time to sell a mortgage service bureaus business. A depressed economy means lower interest rates; lower interest rates increase the number of investors willing to take a chance on mortgage service bureaus businesses. As the interest rates rise, it will be more difficult for buyers to make the numbers work in their favor. At Gaebler, we recognize the value of timing the sale of your mortgage service bureaus business. But we think it's more important to properly position your business for current market conditions -- whatever they may be.
When the Sale Goes Off-Course
Many mortgage service bureaus business are tempted to save brokerage fees by selling their businesses on their own. Although there are exceptions, solo sales typically take longer and are less productive than brokered sales. As a rule, no business should sit on the market for more than six months without attracting the interest of at least a handful of qualified buyers. Likewise, if buyers seem to express interest but quickly exit when you quote the asking price, it's a sign that your mortgage service bureaus business is priced out of the market. The remedy is professional brokerage or a consultation with more experienced sellers.
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