Optimizing Business Exits
Selling a Relocation Services Residential Business
Think relocation services residential business sales have dwindled to a standstill? Think again. Although final sales prices vary, the best sales combine strategy and hard work to achieve desired outcomes.
Waiting for better economic times to sell your company? That's a common anthem in the small business community.
However, serious buyers also understand the value of a good relocation services residential business. Financial statements and ROI are essential in converting modern relocation services residential business prospects into buyers.
Broker vs. No Broker
Anyone who has ever sold a relocation services residential business has eventually needed to decide whether to use a business broker or go it alone. Is there a cost associated with hiring a broker? Sure - about 10% of the final sale prices. But a good broker will make selling your relocation services residential business much less painful. You can also expect to receive a higher sales price for your business in a broker-assisted deal.
Average Preparation Time
There are no effective shortcuts for selling a relocation services residential business. Since buyers prefer to see evidence of future cash flow, you'll want to to strategically lock in cash flows and increase profits before you list the business. Next, the business will need to be documented in professional financial statements and manuals that facilitate the ownership transition. Since all of this takes time and effort, a relocation services residential business can rarely be ready for the marketplace in less than six months. A more likely scenario is that it will take more than a year to create the conditions necessary to receive the maximum sale price.
Dealing with Tire Kickers
Unfortunately, many of the prospects you will encounter aren't serious buyers. As a seller, it's important to separate the tire kickers from the serious buyers as soon as possible. Each tire kicker is an investment of time and energy that could be poured into finding a more qualified prospect. Your business broker can offer insights about how to quickly spot tire kickers. Never provide detailed information about your relocation services residential business until the prospect has been qualified as a serious buyer.
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