Advice on Niche Market Exit Planning

Selling a Title Loans Business

Over the past few years, the title loans business industry has seen more than its share of fluctuations in business values. Many sellers have exited their companies under less-than-ideal circumstances. Yet it's still possible to achieve personal and professional goals when selling a title loans business in the current economic environment.

Cutting corners never pays off, especially in the sale of a title loans business.

Title Loans Business

Most title loans businesses are good business opportunities, a fact that is not going unnoticed by today's discerning buyers.

Identifying Serious Buyers

Many prospective buyers will have a strong desire to acquire your title loans business. The bad news is that they will lack the financial capacity to close the deal. As a seller, it's important to separate the tire kickers from the serious buyers as soon as possible. Each tire kicker is an investment of time and energy that could be poured into finding a more qualified prospect. Your business broker can offer insights about how to quickly spot tire kickers. As a rule, they limit the amount of information that is provided in the initial stages of an engagement, waiting to reveal the juiciest details of the business until the prospect has been thoroughly vetted. Smart sellers may require prospects to provide background and financial information fairly early in the process as a way of verifying the financial capacity to close the deal.

Benefits of Third-Party Assistance

Rarely, if ever, do owners sell a title loans business without outside assistance. The enlistment of a qualified business broker is an excellent first step. Additionally, you may want to hire professionals for legal, valuation and other functions before you put your business on the market. The early recruitment of external resources reduces your risk and results in a more predictable final outcome.

Selling Time

Hoping for a quick title loans business sale? You may be disappointed. 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. On average, it takes a minimum of six months to prepare a title loans business for sale and many sellers spend a year or more positioning their business to command a higher price. In a good market, an attractive title loans business can sell in as little as a few months, although it can take more than a year to find the right buyer after the business is listed.

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