Optimizing Business Exits
Selling a Respiratory Therapy Business
You've heard the naysayers - now isn't the time to sell a respiratory therapy business. But what they don't know is that many entrepreneurs see respiratory therapy businesses as a smart business investment.
Most business sellers are interested in disposing of their businesses as quickly as possible. But that's not how a respiratory therapy business sale works.
But they're also savvy enough to know a good deal when they see it. So for respiratory therapy business sellers, today's market is all about convincing buyers that the numbers make their companies worth the asking price.
Sale Documents
A basic understanding of legal requirements is foundational for a successful business sale. Despite the confusion that exists among many sellers, the essentials of the sale are described in the Letter of Intent, a seminal document that is created prior to due diligence . If you are seeking buyer concessions, the time to address them is before the Letter of Intent is drafted. For sellers, that makes a close review of the Letter of Intent more than a formality - it's a critical juncture on the path to closing.
Average Timeframes
It's rarely possible to sell a respiratory therapy business in a month or two. Although asking price and other factors contribute to sale time, it's difficult to predict how long your business will be on the market before you locate the right buyer. Before you can list your respiratory therapy business, you'll need to invest as much as a year in preparing it for prospective buyers. Once your business is ready for the marketplace, it could take an additional six months to a year to locate the right buyer.
Valuation Methods
Multiple valuation methods exist for a respiratory therapy business. While the income method uses anticipated revenues as a value basis, the asset method focuses on the company's capital, real estate and intellectual assets. Finally, the market method determines the worth of your respiratory therapy business based on the sales of similar businesses in your geographic area. A good appraiser will often use multiple valuation methods to arrive at a reasonable estimate. Sellers should take note of the fact that all three valuation methods reward businesses that takes steps to increase assets and income.
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