Dire economic forecasts have forced many interstate police protection business sellers into hibernation. Instead of listing their companies now, they're hanging back until they see signs of an economic recovery.
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Yet what many sellers don't appreciate is that a down economy can present the perfect opportunity to sell a interstate police protection business.
Setting the Stage
Effective interstate police protection business preparation focuses on communicating value to prospective buyers. In our experience, it pays to solicit the advice of a professional business broker as soon as possible. A good broker will guide you through the preparation stage and make sure you've covered all the bases. Financial statements, appraisals, operations manuals and other documents lay the foundation for your interstate police protection business sale, creating incentives for prospects to agree to a higher asking price.
When to End Negotiations
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 interstate police protection business sale, a stalled negotiation can be an indication that the deal is dead. Since it can be difficult to tell whether the buyer is serious or playing games, it's important to know the lower boundaries of your negotiation strategy and be willing to walk away from the negotiation table, if necessary.
Working with Appraisers
Next to your broker, a skilled appraiser is the person most capable of adding value to the price of your interstate police protection business. Leading industry appraisers equip sellers with a value gauge that can be accessed during negotiations. If you're disappointed with the appraiser's estimate of your company's worth, you have the option of seeking a second opinion. However, it's more often the case that you will need to adjust your expectations of your business's value to buyers.
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