The business-for-sale market is just as frustrating for buyers as it is for sellers these days. Although there are plenty of entrepreneurs who want to buy an emergency disaster recovery business, capital restrictions are holding them back.
(article continues below)
Yet what many sellers don't appreciate is that a down economy can present the perfect opportunity to sell a emergency disaster recovery business.
Negotiation Exit Strategy
Negotiations have a way of dragging on forever. There are countless details that need to be hammered out before a Letter of Intent can be prepared and the process can move on to the due diligence stage. As the seller, you'll be on the front lines of negotiation and will need to know when it's time to bring negotiations to an end. In an emergency disaster recovery business sale, a stalled negotiation can be an indication that the deal is dead. At this point in the process, an awareness of negotiation parameters really pays off. If the buyer is unwilling to accept your minimum demands, it's time to end negotiations and move on to the next prospect.
Are You the Right Person to Sell Your Business?
As the owner, you are both the best and worst person to sell your emergency disaster recovery business. On the one hand, no one knows your business better than you do. When it comes to earnings potential, asset condition, and other considerations, you are the world's leading expert on your company. However, your close connection to your company can also be a drawback. You see your company's potential. But buyers don't pay for potential - they pay for current market value. At a minimum, conduct an independent appraisal of the emergency disaster recovery business to gain an objective sense of fair market value.
It's rarely possible to sell an emergency disaster recovery business in a month or two. Unfortunately, there are no hard and fast rules about the length of time your business will be on the market. Pricing plays a role in sale length, but there are no guarantees that a fairly priced business will sell quickly. Before you can list your emergency disaster recovery business, you'll need to invest as much as a year in preparing it for prospective buyers. Even though it's conceivable that an attractive opportunity could sell in weeks, an immediate flood of offers could indicate that the business is underpriced.
We think you may find these additional resources to be of interest.
If starting an emergency disaster recovery business is on your agenda, these helpul resources may be just what you've been looking for:
If you consider emergency disaster recovery 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, try our list of exit planning guides below.