Advice on Niche Market Exit Planning
Selling a Tax Publications Business
We hear it all the time: 'This economy is a hostile environment for a business sale.' However, tax publications businesses haven't been deterred. In fact, we think this economy is a ripe environment for a tax publications business sale.
When the economy recovers, we expect to see a sudden influx of tax publications businesses in the business-for-sale marketplace. Although these companies have been for sale, their owners have resisted listing them until a better economy materializes.
The business-for-sale market is extremely dynamic. Knowledgeable entrepreneurs understand that market timing isn't nearly as important as other factors in a tax publications business sale. You just need to know your buyers and structure the deal accordingly.
Negotiation Teams
Business sellers are sometimes surprised to find themselves in the position of negotiator-in-chief. When you sell your tax publications business, your business brokers may or may not be willing to conduct negotiations for you. But although you will responsible for negotiating terms with buyers, you should never approach negotiations without support. A negotiation team comprised of trusted advisors and senior business leaders is essential in helping you devise a winning negotiation strategy. More importantly, a negotiation team can serve as a sounding board -- an objective presence that prohibits your personal emotions from clouding your judgment or sabotaging your efforts to negotiate a successful deal.
Handling Unexpected Outcomes
If you're smart, you entered your tax publications business with a set of assumptions about what it would achieve. However, no one told the marketplace about your expectations. The outcome of your sale will be determined by market forces - not by your personal circumstances or desires. Despite your best efforts, you need to prepare yourself for the possibility of receiving less than you expected from the sale of your tax publications business. If price is the most important outcome, you may need to agree to seller financing or other concessions. If a fast sale is the highest priority, you may need to lower the asking price to quickly capture the attention of the marketplace.
Timing Your tax publications business Sale
If you're feeling like your tenure as the owner of the tax publications business is coming to an end, the time to sell is now. There are a lot of naysayers out there advising tax publications business sellers (or would-be sellers) to take a wait and see approach. We aren't nearly as pessimistic about the tax publications business marketplace. The inventory of what we consider to be quality tax publications businesses is actually low right now and there is room for the right sellers to realize substantial gains with investment-conscious buyers.
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