Cutting corners never pays off, especially in the sale of an advertising agency.
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There are many factors involved with the decision to sell a business. So if you're waiting for the perfect market conditions to sell your advertising agency, you could be waiting a while. If your business is ready to be sold, the time to sell is now. To improve sale outcomes, you will simply need to tailor your advertising agency to today's buyers.
Selling to a Family Member
The idea of passing a business along to a family member sounds idyllic to many business owners. in reality, a family-based advertising agency sale can be more complicated than selling to a stranger. Often, a sale to a family member creates fractures within the family. Whether you offer the family member special concessions or not, either the buyer or other family members may take offense. If possible, discuss a long-term, generational transition with the entire family and seek the advice of a professional consultant.
Average Preparation Time
There are no effective shortcuts for selling an advertising agency. 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. Since all of this takes time and effort, a advertising agency can rarely be ready for the marketplace in less than six months. A more likely scenario is that it will take more than a year to create the conditions necessary to receive the maximum sale price.
How Much Does It Cost to Sell an advertising agency?
You'll need to incorporate the cost of the sale into the calculation the minimum price you are willing to receive for your advertising agency. Good brokerage takes a 10% success fee off the top of the final sale price. Professional consultations can also represent a significant expense during the course of an advertising agency sale. Furthermore, your time has value, so you may need to include a personal compensation consideration in your expense estimates.
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