Although we're optimistic about the economy, we also recognize that it takes the right strategy to sell an elementary education business in today's market.
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At Gaebler, we're seeing elementary education business sellers succeed by applying sound sales principles combined with a refusal to be intimidated by a down economy.
What About Market Conditions?
No one plans to sell an elementary education business in a down economy. So far, government intervention and promises that the economy is slowly recovering haven't been enough to alleviate many entrepreneur's fears. Despite the risks, sellers need to be cognizant of the fact that there is a large volume of elementary education businesses waiting to be listed until the economy rebounds. When that happens, the buyers' market will become even stronger and have a negative impact on prices. So what's our point? The economy isn't the most important factor in the sale of your business. Instead, you should be focusing on making your elementary education business as attractive as possible so to buyers right now.
In an elementary education business sale, pricing is based on a number of factors, including the costs incurred during the sale. Good brokerage takes a 10% success fee off the top of the final sale price. 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.
How to Skillfully Address Buyer Concerns
Buyers can present challenges, especially during the due diligence stage. The questions elementary education business ask during due diligence are designed to alleviate their concerns about the business and should be promptly addressed by the seller. To protect yourself, don't offer an answer until you are sure the information you are providing is 100% accurate. Refer to the Letter of Intent to determine how to wrap up due diligence and move the buyer on to closing.
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