Exit Planning Advice By Market
Selling an Accountants Information and Referral Business
Few entrepreneurs relish the idea of selling a business in a struggling economy. Yet accountants information and referral businesses continue to be sold at a brisk pace, outperforming the sales of many other types of businesses.
We hear it all the time: "I'm waiting until the economy recovers to list my business."
In our opinion, that kind of thinking doesn't make sense. In fact, this might be the perfect time to sell an accountants information and referral business. Here's how to do it . . .
Seller Financing
Business buyers are in a capital crunch. Thanks to more stringent commercial lending requirements, sellers have become de facto lenders, providing the financing buyers need to get their feet in the door. Although 100% seller financing isn't recommended, sellers are financing up to 70% of the sale price to close deals.
What to Expect in an Accountants Information & Referral Business Sale
It's impossible to predict the emotional highs and lows you will experience during the sale of your accountants information and referral business. Given your personal investment, you may also experience disappointment in the market's assessment of your company's value. You can prepare yourself by talking through your emotions with friends and family members, and thoroughly evaluating your minimum requirements before you put your accountants information and referral business on the market.
Legal Concerns
A basic understanding of legal requirements is foundational for a successful business sale. Despite the confusion that exists among many sellers, the essentials of the sale are described in the Letter of Intent, a seminal document that is created prior to due diligence . If you are seeking buyer concessions, the time to address them is before the Letter of Intent is drafted. So after consulting with your broker and attorney, make sure you're comfortable with the terms of the Letter of Intent. If not, everything you do to close the sale of your accountants information and referral business may be a waste of time.
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