Profitable Niche Market Exit Plans
Selling an On-Hold Music and Message Services Business
Business-for-sale markets are susceptible to a variety of influences. As you know, the on-hold music and message services business industry has seen more than its share of fluctuations in business values. Here's what you'll need to know to sell an on-hold music and message services business during challenging economic times.
If you plan on selling your on-hold music and message services business quickly, prepare to be disappointed.
Nothing lasts forever and you will ultimately be faced with the task of selling your company. When that happens, your future plans will be dependent on your ability to receive the highest possible sale price for your on-hold music and message services business.
Current Market Conditions
No one plans to sell an on-hold music and message services business in a down economy. So far, government intervention and promises that the economy is slowly recovering haven't been enough to alleviate many entrepreneur's fears. However, many business sellers don't realize that a full economic rebound can have devastating consequences, particularly if sellers who have waited to list their businesses suddenly create a glut in the business-for-sale marketplace. The simple truth is that the economy shouldn't dictate whether or not now is the right time to sell an on-hold music and message services business. Your individual circumstances and personal goals are more influential factors in determining when it's time to put your business on the market.
Buyer Concessions
In a tight economy, seller concessions are the name of the game. But that doesn't mean you can't push for buyer concessions to achieve a more favorable outcome in the sale of your on-hold music and message services business. Although this scenario frequently plays out around seller financed deals, it's possible to push for a higher sales price or other form of compensation if you agree to mentor the buyer for a specified period of time. Like seller concessions, buyer concessions should be addressed during negotiations, before the preparation of a Letter of Intent.
Sale Costs
In an on-hold music and message services business sale, pricing is based on a number of factors, including the costs incurred during the sale. Good brokerage takes a 10% success fee off the top of the final sale price. Professional consultations can also represent a significant expense during the course of an on-hold music and message services business sale. Furthermore, your time has value, so you may need to include a personal compensation consideration in your expense estimates.
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