Optimizing Business Exits
Selling a Real Estate Investments Business
There are few things as intimidating as selling a business in a sluggish economy. Although it's going to take some work, there is a good chance you can still sell your company at or even above fair market value.
In a down economy, many real estate investments business sellers wait to list their businesses until they see signs that the economy has rebounded, making it difficult to accurately evaluate the number of real estate investments businesses that are actually for sale.
Fortunately for sellers, forward-thinking entrepreneurs continue to be attracted to real estate investments businesses that exhibit strong financials and potential for future growth.
When to End Negotiations
If the devil is in the details, the negotiation stage of a real estate investments business sale is the devil's playground. Yet eventually many negotiations reach a stage where further discussion is pointless. In a real estate investments business sale, a stalled negotiation can be an indication that the deal is dead. If you are adequately prepared, you'll know what your bottom line is -- and if the buyer is unwilling to meet your bottom line requirements or if negotiations are stalled, it's time to step back from the negotiating table and re-evaluate your options.
The Emotions of a Business Sale
Business sellers sometimes struggle to handle the emotions of a sale. You probably have good reasons for selling your real estate investments business now, but that doesn't make the emotions you will experience any easier. It's important to allow yourself time to process your emotions during your exit. At the same time, it's helpful to consult with people who can help limit the influence of your emotions on negotiations and other aspects of the sale process.
When the Sale Goes Off-Course
Many real estate investments 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. Lack of buyer enthusiasm or persistence indicates that something is wrong. The remedy is professional brokerage or a consultation with more experienced sellers.
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