Mastering Niche Market Exit Planning
Selling a Nanny Referral Service
Most businesses are susceptible to economic conditions and nanny referral services are no exception. But in some cases, a down economy can actually improve saleability. To increase your company's sale price, you'll need to perform adequate preparations, positioning it to the catch the eye of profit-minded buyers.
Cutting corners never pays off, especially in the sale of a nanny referral service.
There are still plenty of nanny referral service buyers looking for opportunities that present well in the marketplace.
When Is the Right Time to Sell?
If you're feeling like your tenure as the owner of the nanny referral service is coming to an end, the time to sell is now. Some experts are telling nanny referral service sellers to put their plans on hold until the economy fully rebounds. We aren't nearly as pessimistic about the nanny referral service marketplace. The inventory of what we consider to be quality nanny referral services is actually low right now and there is room for the right sellers to realize substantial gains with investment-conscious buyers.
It's obvious that you're going to need to hire an attorney to finalize the sale of your nanny referral service. A good lawyer serves a variety of functions during the process. In addition to reviewing the letter of intent, sales contract, and other documents, your attorney should be capable of advising you about due diligence and the tax consequences of the sale. We recommend hiring an attorney early in the process to gain insights about the legal consequences of various sale outcomes.
In a tight economy, seller concessions are the name of the game. But that doesn't mean you can't push for buyer concessions to achieve a more favorable outcome in the sale of your nanny referral service. For example, if the buyer needs seller financing, you can leverage a five-year loan to push for a higher sales price. Although you won't see all of the proceeds upfront, you'll earn interest on the balance and realize a higher price than you would in an all cash deal. Like seller concessions, buyer concessions should be addressed during negotiations, before the preparation of a Letter of Intent.
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