Optimizing Business Exits
Selling a Repair and Remodeling Insurance Business
We hear from a lot of business owners who are timid about listing their repair and remodeling insurance business. Despite the mood of the market, we think there are still opportunities to receive a good price for your repair and remodeling insurance business. Here's what you need to know . . .
You need to get a good price for your repair and remodeling insurance business. To get there, you'll need to set realistic expectations and follow a deliberate selling strategy.
Most repair and remodeling insurance businesses are good business opportunities, a fact that is not going unnoticed by today's discerning buyers.
Timing the Market
Worried about timing? Believe it or not, this could be an advantageous time to put a repair and remodeling insurance business up for sale. A depressed economy means lower interest rates; lower interest rates increase the number of investors willing to take a chance on repair and remodeling insurance businesses. As the interest rates rise, it will be more difficult for buyers to make the numbers work in their favor. At Gaebler, we recognize the value of timing the sale of your repair and remodeling insurance business. But we think it's more important to properly position your business for current market conditions -- whatever they may be.
Turning the Tables: Buyer Concessions
Sellers aren't the only ones who can make concessions in a business sale. In many instances, sellers can request buyer concessions. Although this scenario frequently plays out around seller financed deals, it's possible to push for a higher sales price or other form of compensation if you agree to mentor the buyer for a specified period of time. Asset exclusions, retained ownership shares and long-term contracts with another of the seller's companies can also be leveraged to extract concessions from buyers.
Sale Costs
In a repair and remodeling insurance business sale, pricing is based on a number of factors, including the costs incurred during the sale. Good brokerage takes a 10% success fee off the top of the final sale price. Professional consultations can also represent a significant expense during the course of a repair and remodeling insurance business sale. Furthermore, your time has value, so you may need to include a personal compensation consideration in your expense estimates.
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