Waiting for better economic times to sell your company? That's a common anthem in the small business community.
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Too often investment bankers business sellers fail to receive fair market value for their businesses. With the right strategy, your sale doesn't have to end that way.
It's obvious that you're going to need to hire an attorney to finalize the sale of your investment bankers business. A good lawyer serves a variety of functions during the process. In addition to reviewing the letter of intent, sales contract, and other documents, your attorney should be capable of advising you about due diligence and the tax consequences of the sale. We recommend hiring an attorney early in the process to gain insights about the legal consequences of various sale outcomes.
What About Market Conditions?
Today's investment bankers business sellers face an intimidating economic landscape. Although the economy is gaining steam, recovery is slow and entrepreneurs are holding their cards close to their vests. Despite the risks, sellers need to be cognizant of the fact that there is a large volume of investment bankers 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 investment bankers business as attractive as possible so to buyers right now.
Business buyers are in a capital crunch. Financial institutions have tightened up their lending policies, making it difficult for inexperienced and undercapitalized entrepreneurs to buy investment bankers businesses. As a result, buyers expect sellers to finance a significant portion of the sale. Although 100% seller financing isn't recommended, sellers are financing up to 70% of the sale price to close deals.
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