Profitable Niche Market Exit Plans
Selling an Oil and Gas Land Leases, Properties, and Royalties Business
Selling an oil and gas land leases, properties, and royalties business doesn't happen overnight. It takes a deliberate process to get top dollar for your company.
Intimidated by a sluggish economy, business buyers are more cautious than ever.
Undaunted by economic conditions, many oil and gas land leases, properties, and royalties business sellers are achieving their sale goals through deliberate sale strategies.
In an oil and gas land leases, properties, and royalties business sale, pricing is based on a number of factors, including the costs incurred during the sale. Hiring a broker is a mixed bag because although brokers can increase the sale price, they also take a 10% fee. Attorneys, accountants and appraisers work for a flat fee that can range from hundreds to thousands of dollars. Likewise, you'll need to consider how much it will cost to promote the sale as well as the lost time it will take for you and your team to navigate the sale process.
Identifying Serious Buyers
If you haven't sold a business before, prepare to be overwhelmed by tire kickers -- seemingly interested buyers who lack the capacity, ability or desire to actually purchase your oil and gas land leases, properties, and royalties business. Even though tire kickers are a fact of life in any sale scenario, they sap valuable time and energy that could be spent identifying more serious prospects. Good business brokers are adept at separating serious buyers from the rest of the pack. As a rule, they limit the amount of information that is provided in the initial stages of an engagement, waiting to reveal the juiciest details of the business until the prospect has been thoroughly vetted. Smart sellers may require prospects to provide background and financial information fairly early in the process as a way of verifying the financial capacity to close the deal.
Laying the Groundwork
A successful oil and gas land leases, properties, and royalties business sale begins with careful planning. Although you are convinced your business has value in the marketplace, the planning process establishes a framework for communicating its value to prospective buyers. Professional business brokers understand buyers and know how to properly communicate an oil and gas land leases, properties, and royalties business to the marketplace. Specifically, brokers can advise you about the preparation of financial statements and other documents buyers expect to see in a premium oil and gas land leases, properties, and royalties business opportunity.
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