Optimizing Business Exits
Selling a Recorded and Live Information Services Business
There's a right way and a wrong way to sell a recorded and live information services business these days. More than ever before, it's important for sellers to know the tactics and techniques that are being used to maximize sales price and achieve desired sale outcomes.
In a down economy, many recorded and live information services 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 recorded and live information services businesses that are actually for sale.
The economy hasn't squashed the market for recorded and live information services businesses. Like always, unprofitable and poorly positioned businesses struggle to find buyers while sellers who have invested time and effort to prepare their sale are being rewarded in the marketplace.
Current Market Conditions
No one plans to sell a recorded and live information services business in a down economy. Although the economy is gaining steam, recovery is slow and entrepreneurs are holding their cards close to their vests. However, many business sellers don't realize that a full economic rebound can have devastating consequences, particularly if sellers who have waited to list their businesses suddenly create a glut in the business-for-sale marketplace. So what's our point? The economy isn't the most important factor in the sale of your business. Instead, you should be focusing on making your recorded and live information services business as attractive as possible so to buyers right now.
Selecting a Broker
A good business broker is your best bet for a fast and profitable business sale. During the selection process, look for brokers with a proven track record of successful recorded and live information services business sales. Take our word for it -- recorded and live information services businesses are unique businesses and you need a broker who understands how to properly market your recorded and live information services business to prospective buyers. As a practical matter, you'll also want to focus your search on brokers who have pre-existing relationships with attorneys, appraisers, and other professionals who can provide assistance at various stages of the process.
The shortage in today's marketplace isn't interested buyers -- it's capital. Banks and other lending institutions aren't eager to lend to unproven and undercapitalized recorded and live information services business buyers regardless of the business's potential. Rather than abandon their plans entirely, many buyers are pursuing finance concessions from sellers. As you prepare for the sale of your recorded and live information services business, expect to be asked to finance a substantial part of the sale price.
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