Selling a tenant screening business? You'll need to be prepared to address a variety of challenges that are common in the business-for-sale marketplace.
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The economy hasn't squashed the market for tenant screening businesses. And the ones that are commanding the highest price tags are the ones with sellers who are committed to the sale process.
When you sell a tenant screening business, there are a number of variables you need to consider. Interest rates, spending, inflation, and other variables directly influence how long your tenant screening business will be on the market as well as its sales price. But at Gaebler, we advise our business partners to look beyond simple economic data when determining whether it's the right time to sell a tenant screening business. A much better approach is to focus on the factors that always attract buyers and investors. When it comes to selling a tenant screening business, successful sales sales often boil down to the business itself - not the economy.
Selling a Tenant screening Business to an Employee
Employee sales have pros and cons. There are some perks to selling the business in-house. Since the worker already knows the ins and outs of the business, due diligence should be a breeze, not to mention the fact that you won't have to wait months or years for the right buyer to emerge on the open marketplace. Yet most employees lack the means to buy their employer's business at or near the asking price. A seller-financed deal may be necessary unless the employee has significant assets or investor backing.
Leveraging Industry Connections
There are a lot of different places to look for tenant screening business buyers. To advertise your sale to the widest possible audience, consider a listing on BizBuySell.com or other top online business-for-sale listing sites. But industry connections can also be a valuable source of leads. Time and time again, successful tenant screening business sales emerge from relationships within the industry. The challenge is to leverage industry connections while keeping knowledge of the sale hidden from your competitors. Use good sense in restricting the flow of information within the industry and focusing your efforts toward trusted industry allies.
Given your interest in exit planning and in tenant screening businesses, you might find these additional resources to be of interest.
If starting a tenant screening business is on your agenda, these guides will help you get started:
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