Optimizing Business Exits
Selling a Reverse Mortgages Business
Don't believe anyone who tells you it's easy to sell a reverse mortgages business. A lot of things need to happen before you can successfully exit your business. 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 reverse mortgages business, there are no shortcuts to success.
Yet what many sellers don't appreciate is that a down economy can present the perfect opportunity to sell a reverse mortgages business.
Business Valuation
Professional appraisers can use three methods to determine the value ofa reverse mortgages business: The income method, the asset method and the market method. 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. In many sales, the most accurate valuation comes from the market method which determines value based on the recent sales of similar businesses. All three methods have multiple variations and it's not uncommon for appraisers to use a combination of the three to determine the value of your business. Sellers should take note of the fact that all three valuation methods reward businesses that takes steps to increase assets and income.
Working with Accountants
Professional accountants lend credibility to the financial preparation of a reverse mortgages business sale. Before your reverse mortgages business goes on the market, you should sit down with your accountant to clarify your financial goals and the tax consequences of a sale. Brokers often advise their clients to have an accountant perform an audit of the business prior to sale. With seller financing becoming common, professional accountants are playing a more central role in negotiations and buyer qualification.
Emotional Considerations
It's impossible to predict the emotional highs and lows you will experience during the sale of your reverse mortgages business. Given your personal investment, you may also experience disappointment in the market's assessment of your company's value. Although it isn't easy, you can mitigate the emotional impact of a reverse mortgages business sale by setting realistic expectations before you list your business.
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