Mastering Niche Market Exit Planning
Selling a Nursing School
You've learned a lot during your tenure as a nursing school owner. Now the trick is to convince cautious buyers that your operation is worth the asking price.
Dire economic forecasts have forced many nursing school sellers into hibernation. Instead of listing their companies now, they're hanging back until they see signs of an economic recovery.
The business-for-sale market is extremely dynamic. Knowledgeable entrepreneurs understand that market timing isn't nearly as important as other factors in a nursing school sale. The key is to go into the sale with your eyes open and with complete awareness of market condition.
Advertising Your Sale
The best nursing school sales incorporate comprehensive advertising plans. But confidentiality issues are a hurdle you'll need to address before you put your nursing school on the market. If sale information leaks out, competitors can use it to steal customers and circulate negative messages about your business throughout the industry. Business brokers are skilled at publicizing nursing school sales while maintaining the confidentiality that is critical to your business.
Selling a Nursing School to an Employee
Employee sales have pros and cons. A faithful employee may have the motivation and ability to continue to operate the business. If you need to sell quickly, the timeframe is condensed in an employee sale because you don't need to track down a buyer. Yet most employees lack the means to buy their employer's business at or near the asking price. Seller financing is one way to get around the capital deficit of an employee-based nursing school sale, as long as you are willing to vet the employee's credit worthiness the same as any other buyer.
The calculation of your asking price should include a buffer to cover the expense of the sale process. Good brokerage takes a 10% success fee off the top of the final sale price. Professional consultations can also represent a significant expense during the course of a nursing school sale. Furthermore, your time has value, so you may need to include a personal compensation consideration in your expense estimates.
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