Optimizing Business Exits
Selling a Recruiters Business
Looking for shortcuts? You won't find them when you sell a recruiters business. In this industry, a business sale takes time, effort and dedication. But with a few tips, you can keep your shirt and your sanity in the sale of your business.
When it comes to selling a recruiters business, there are no shortcuts to success.
However, serious buyers also understand the value of a good recruiters business. So for recruiters business sellers, today's market is all about convincing buyers that the numbers make their companies worth the asking price.
Current Market Conditions
No one plans to sell a recruiters business in a down economy. Although the economy is gaining steam, recovery is slow and entrepreneurs are holding their cards close to their vests. But when the economy fully rebounds, a shadow inventory of recruiters businesses will flood the market and drive prices down even further. 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 recruiters business as attractive as possible so to buyers right now.
Pros & Cons of a Sale to an Employee
Although it may seem easier to sell your recruiters business to an employee, this approach also has some pitfalls. A key employee may seem like a natural sales prospect. 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 recruiters business sale, as long as you are willing to vet the employee's credit worthiness the same as any other buyer.
After the Sale
Due diligence has ended and you're ready to close on the sale of your recruiters business. All that stands between you and the sale proceeds is a few signatures, right? Not so fast. The transition to the new owner, the distribution of sale proceeds and other issues can weigh heavily on sellers. If there are pending details that still need to ironed out, address them ASAP to ensure a smooth closing and transition.
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