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Selling an Insurance Annuities Business

We hear from a lot of business owners who are timid about listing their insurance annuities business. Despite the mood of the market, we think there are still opportunities to receive a good price for your insurance annuities business. Here's what you need to know . . .

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 insurance annuities business, capital restrictions are holding them back.

You'll always have an excuse for not putting your business on the market. With hard work and dedication, your insurance annuities business can be sold at or above fair market value right now.

Seller Concessions

It's becoming more difficult to sell an insurance annuities business without considering seller concessions. In a down economy sellers become bankers; an unwillingness to finance at least part of the sale of an insurance annuities business can translate into a dead deal. Capital is scarce, causing new entrepreneurs to rely on sellers to finance at least part of the purchase price. If you are unwilling or unable to offer financing, be prepared to offer other types of concessions to close the deal.

Legal Concerns

In an insurance annuities business sale, the Letter of Intent contains the vital elements of the deal between the buyer and the seller . If you are seeking buyer concessions, the time to address them is before the Letter of Intent is drafted. So after consulting with your broker and attorney, make sure you're comfortable with the terms of the Letter of Intent. If not, everything you do to close the sale of your insurance annuities business may be a waste of time.

Preparing for What's Next

The decision to sell your insurance annuities business can't be made without adequate consideration of what will happen after the sale. many sellers find themselves ill-equipped to handle life after their business and fail to understand that their future plans can influence the sale process. In today's market, many buyers expect seller financing - a concession that might not be a possibility for sellers whose next step requires the entire proceeds at the time of the sale.

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