You survived all the ups and downs of owning a business. Next, you'll need to prepare yourself to address the rigors of selling an employment database services business.
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If your exit strategy involves selling an employment database services business now, sellers need to make a strong case for buyers to purchase at or near the asking price.
Timing the Market
Worried about timing? Believe it or not, this could be an advantageous time to put an employment database services business up for sale. A depressed economy means lower interest rates; lower interest rates increase the number of investors willing to take a chance on employment database services 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.
Most employment database services business sellers realize they will need to offer concessions to sell their businesses. But for every concession you grant, there may be an opportunity to obtain a concession from the buyer. Often, buyer concessions represent financial incentives that the seller receives in exchange for providing a non-cash benefit (e.g. training, financing, etc.. You can also choose to exclude certain items like equipment or inventory from the deal if the buyer isn't willing to meet your price expectations. By selling excluded assets on the secondary market, you can compensate for an anemic sale price.
Working with Accountants
Accountants lay the financial groundwork for a business sale. Most employment database services business have significant tax consequences requiring the input of a qualified accountant. A professional audit can ease buyer concerns and amp up the value of your financial presentation. In certain instances, it may be appropriate to ask your accountant to vet the financials of prospective buyers, run credit checks or even structure the terms of a seller-financed deal.
Given your interest in exit planning and in employment database services businesses, you might find these additional resources to be of interest.
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