Optimizing Business Exits
Selling a Real Estate Agencies and Brokerage Business
Forget about what you read in the paper -- real estate agencies and brokerage businesses are being sold everyday and the business-for-sale market is poised for even greater growth in the months ahead.
It's a fact: Successful business sales take time.
A key decision for those who want to open a real estate agency is whether to buy into a real estate franchise or start an independent agency.
Success is a factor of preparation, execution and a keen eye for the market. As a business seller, you need to go into the process with the mental goal of presenting your business in the best possible light.
After the Sale
As your real estate agencysale nears completion, there is a lot of work remaining to be done. The transition to the new owner, the distribution of sale proceeds and other issues can weigh heavily on sellers. Ideally, these and other post-sale details should be addressed early on. But if you haven't dealt with them yet, it's important to have a frank conversation with the buyer, your broker and other professionals as soon as possible.
Laying the Groundwork
Effective real estate agency preparation focuses on communicating value to prospective buyers. Professional business brokers understand buyers and know how to properly communicate a real estate agency to the marketplace. At a minimum, you'll want to position your business to receive the highest possible sale price, prepare a packet for prospective buyers and perform an initial appraisal before you put your real estate agency on the market.
Selling to a Family Member
The idea of passing a business along to a family member sounds idyllic to many business owners. in reality, a family-based real estate agency sale can be more complicated than selling to a stranger. Often, a sale to a family member creates fractures within the family. Unless you have agreed to treat the family member like any other buyer, the risk of hard feelings among other potential heirs or family members is high. If possible, discuss a long-term, generational transition with the entire family and seek the advice of a professional consultant.
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