Exit Planning Advice By Market
Selling an Accounts Receivable Loan Business
The sale of your accounts receivable loan business is the culmination of this stage of your entrepreneurial journey. Although most business owners expect a storybook ending, it will take the careful application of sound selling principles to bring your sale to a successful conclusion.
Selling a accounts receivable loan business? You'll need to be prepared to address a variety of challenges that are common in the business-for-sale marketplace.
There is no simple way to sell a business. But the most prepared accounts receivable loan business sellers are achieving fair market value and more for their companies through persistence and the application of sound selling techniques.
Timing the Market
Now may be the best time to sell an accounts receivable loan business. A depressed economy means lower interest rates; lower interest rates increase the number of investors willing to take a chance on accounts receivable loan businesses. As the interest rates rise, it will be more difficult for buyers to make the numbers work in their favor. So we see market timing as a concern that can be easily mitigated by applying fundamental sales strategies and adequately preparing your company for buyers.
Negotiation Exit Strategy
Negotiations have a way of dragging on forever. Yet eventually many negotiations reach a stage where further discussion is pointless. In an accounts receivable loan business sale, a stalled negotiation can be an indication that the deal is dead. If you are adequately prepared, you'll know what your bottom line is -- and if the buyer is unwilling to meet your bottom line requirements or if negotiations are stalled, it's time to step back from the negotiating table and re-evaluate your options.
Sale Documents
In an accounts receivable loan business sale, the Letter of Intent contains the vital elements of the deal between the buyer and the seller . If you are seeking buyer concessions, the time to address them is before the Letter of Intent is drafted. For sellers, that makes a close review of the Letter of Intent more than a formality - it's a critical juncture on the path to closing.
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