Intimidated by a sluggish economy, business buyers are more cautious than ever.
(article continues below)
There is no simple way to sell a business. But the most prepared electronic funds transfer business sellers are achieving fair market value and more for their companies through persistence and the application of sound selling techniques.
Preparing Your Employees
As a business owner, you want to keep you employees informed about your plans; as a seller it's in your best interest to keep your employees in the dark for as long as possible. The more people who know that the business is on the market, the riskier the sale becomes. However, the longer the selling process drags on, the more likely it is that rumors will begin to circulate throughout your workforce. So at some point you will have to resign yourself to the idea of telling some or all of your employees that you have listed the electronic funds transfer business on the market. Your employees will undoubtedly have many questions about their future with the company. Try to answer their questions to the best of your ability, but avoid making any promises that you are not authorized to make.
Objectivity is a rare commodity in a business sale. Your estimate of your company's worth is probably skewed by your emotions and your close, personal connection to the business. Although it may be a hard pill to swallow, you need to find a way to introduce objectivity into your sale. A business broker can be a valuable resource in right-sizing your expectations and preparing you for market realities.
In an electronic funds transfer business sale, pricing is based on a number of factors, including the costs incurred during the sale. Although they can significantly increase the final sale price, brokers typically receive a 10% commission. Depending on your circumstances, you may also incur substantial expenses in hiring legal, appraisal and accounting professionals. Furthermore, your time has value, so you may need to include a personal compensation consideration in your expense estimates.
Given your interest in exit planning and in electronic funds transfer businesses, you might find these additional resources to be of interest.
If you plan on opening an electronic funds transfer business, these helpul resources may be just what you've been looking for:
If you consider electronic funds transfer businesses to be sales prospects, this isn't the best resource for you on our site. Try these useful resources instead:
If you are eager to get business succession tips for a different industry, please browse our alphabetical list exit planning guides below.