Exit Planning Strategies

Selling a Viatical and Senior Settlements Business

Maybe you're counting on your viatical and senior settlements business to be a stepping stone to your next big business venture. Maybe it's your retirement fund. Either way, you need to maximize the price it gets in the business-for-sale marketplace.

Dire economic forecasts have forced many viatical and senior settlements business sellers into hibernation. Instead of listing their companies now, they're hanging back until they see signs of an economic recovery.

Despite the conventional wisdom, we believe current economic conditions are right for selling a viatical and senior settlements business. With the right information and strategy, you could be well on your way to a successful sale

The Best Person to Sell Your Viatical & Senior Settlements Business

An unassisted business sale is a double-edged sword. Without a doubt, you have the most at stake in the outcome of your sale. That makes you the most passionate advocate for your viatical and senior settlements business in the business-for-sale marketplace. The problem is that your passion for your business can also sabotage your sale. Business owners are subjective and biased about their company's true worth. Business brokers and other third-party consultants bring objectivity to the sale process and give you much-needed insight about buyers' mindsets.

Selling Time

Hoping for a quick viatical and senior settlements business sale? You may be disappointed. The amount of time your business will be on the market depends on how aggressively it is priced and marketed. Before you can list your viatical and senior settlements business, you'll need to invest as much as a year in preparing it for prospective buyers. In a good market, an attractive viatical and senior settlements 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.

Business Valuation

Professional appraisers can use three methods to determine the value ofa viatical and senior settlements business: The income method, the asset method and the market method. The income method determines value based on the amount of income the business is expected to generate. The asset method, on the other hand, is based on the value of tangible and non-tangible assets (e.g. brands and trademarks). In many sales, the most accurate valuation comes from the market method which determines value based on the recent sales of similar businesses. As a safeguard, consider conducting appraisals using variations of multiple appraisal methods. To drive up your sale price, position your viatical and senior settlements business by improving variables like assets, revenue and profitability during the years leading up to a sale.

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