February 26, 2020  
 
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Selling a Preferred Provider Organizations Business

It's a misconception that no one is buying preferred provider organizations businesses these days. Savvy entrepreneurs see preferred provider organizations business opportunities as a path to short-term profits and long-term growth. Here's what you need to know to get a fair price for your company.

Selling a preferred provider organizations business? You'll need to be prepared to address a variety of challenges that are common in the business-for-sale marketplace.
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In a skittish economy, preferred provider organizations business sellers can access several strategies to receive fair market value from entrepreneurs who understand the value of a good business investment.

Understanding Market Timing

Now may be the best time to sell a preferred provider organizations business. A depressed economy means lower interest rates; lower interest rates increase the number of investors willing to take a chance on preferred provider organizations businesses. As the interest rates rise, it will be more difficult for buyers to make the numbers work in their favor. Market conditions can be intimidating. But your larger concern should be whether or not your business is ready to be presented to qualified sale prospects.

Selling a Preferred Provider Organizations Business to an Employee

Although it may seem easier to sell your preferred provider organizations business to an employee, this approach also has some pitfalls. A faithful employee may have the motivation and ability to continue to operate the business. The time and expense of locating the right buyer will be nonexistent and you won't have to spend weeks showing the buyer every square inch of the company. However, some employees feel they are entitled to special treatment and pricing, especially if they have played a key role in the company's success. Seller financing is one way to get around the capital deficit of an employee-based preferred provider organizations business sale, as long as you are willing to vet the employee's credit worthiness the same as any other buyer.

Adjusting Expectations

Every business seller dreams of a fast sale and a fat payday. But it's highly unlikely that the sale will meet all of your expectations, especially if your initial estimates were created without the benefit of a solid appraisal or market knowledge. Surprises are inevitable, so to minimize the disappointment you will need to prioritize the outcomes you require from the sale. In the event that the sale fails to meet your expectations, you may want to consider taking the business off the market until you can grow it enough to achieve your desired sale price.

More Exit Planning Articles

Ready to learn more? You may find these additional resources to be of interest.

Pros and Cons of Using Business Brokers

Marketing a Preferred Provider Organizations Business

Role of Location In Selling a Business


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Selling a preferred provider organizations business is a complex topic, so there's still much more that can be discussed. We welcome your questions, comments and feedback about this topic.


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