Advice on Niche Market Exit Planning
Selling a Transcription Services Business
Does the economy have you down? For exiting owners, the idea of listing their company now can be terrifying. Fortunately, a transcription services business sale isn't as scary as it seems.
An assortment of hurdles and obstacles stand between you and the successful sale of your transcription services business.
Eventually, it will the time will come to exit your business. When that happens, your future plans will be dependent on your ability to receive the highest possible sale price for your transcription services business.
Closing Strategies
Seller concessions sweeten the deal for buyers and are a necessary fixture in a sluggish economy. Concessions can consist of non-cash as well as cash incentives. When you've reached your limit on price, consider offering non-cash concessions to encourage a commitment from the buyer. In the current economy, seller financing is becoming common in transcription services business sales. If the prospect is inexperienced or lacks credentials in the industry, you can also offer to stay with the business for a specified period of time to help the new owner get on his feet and introduce him to your network of industry contacts.
Selecting a Broker
Good business brokers inevitably produce better business sales. No two transcription services business sales are alike. That means you'll want to look for a broker who has been around the block and possesses substantial experience selling businesses in the industry. The chemistry you have with your broker is a consideration. If you don't connect with a specific broker, move on to someone else - even if the first broker looks great on paper.
Sale Preparation Timeframes
There are no effective shortcuts for selling a transcription services business. Since buyers prefer to see evidence of future cash flow, you'll want to to strategically lock in cash flows and increase profits before you list the business. Next, the business will need to be documented in professional financial statements and manuals that facilitate the ownership transition. At a minimum, plan on spending six months preparing your transcription services business for the marketplace. If you can afford to wait, we recommend investing a few years in improving your business's financial position before you put it on the market.
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