Most owners know that selling an ambulance business isn’t going to be a walk in the park, yet few realize just how fickle the process can be. Sellers may be surprised to learn that the traits that serve them well in business – such as an emotional investment in their company and openness with employees and customers – can become distractions during a sale. Avoiding the following hazards can make for a smooth and successful sale.
Watch Out For Emotional Pricing
If realtors let homeowners set their own prices, they would quickly be out of business. Business owners, like homeowners, often have a strong emotional attachment to their asset. That’s fine, as long as they recognize that buyers do not share this attachment. Many businesses of all types take several years to sell, if they sell at all, because sellers have arbitrarily assigned a price they think (or hope) is fair. The best price for your business is what the market is offering for similar companies based on potential for cash flow, revenue, and your assets. Of course, intangibles like strong branding, reputation, and an experienced management team can also influence value, especially in an industry that requires skill and resources like the medical transportation business. Since no two companies are the same, an experienced intermediary can help you arrive at your true value.
Beware of Breaches in Confidentiality
You may feel inclined to tell employees you’re planning on putting your non emergency medical transportation business for sale, but doing so may do more harm than good. Letting workers into the loop can cause unnecessary tensions and distractions. In the worst case scenario, an employee may spill the news outside of the office, compromising accounts. When you’ve just determined your business value, you don’t want to let it slide because you’ve lost control of your company. Understandably, keeping a secret from employees can be hard to do, especially for a small business owner who has formed close bonds with workers. A good intermediary can make sure that preparation and negotiations are prepared in a neutral way. Of course, not all breaches in confidentiality come from within. Occasionally an unethical buyer will question vendors and customers about your business in an attempt to perform their own research. Enacting a strict confidentiality agreement can protect your business from behind-the-back snooping.
Don’t Miss Out On Your Best Buyer
The right buyer will offer a fair price, be the right fit for your business, and allow your legacy to live on after you’ve exited the market. But for many para-transit company owners, this buyer will never materialize. Why? Rarely does a dream buyer approach a business. If you’re advertising in your local area, you may be missing out an opportunity to reach a perfect buyer who happens to reside on the other side of the country. In many cases, he or she may not even be in the market for an acquisition. Ambulance business owners are not experts in selling businesses, and business brokers are typically not experts in the ambulance industry. With the help of an industry-specific intermediary, you may be able to reach investors you never thought possible. National statistics show that less than 20 percent of listed businesses end up selling. The Tenney Group, on the other hand, enjoys a success rate of 85 percent. From the potential to grow to the ability to provide a comfortable income, your business has something to offer to the right buyer – and they have much to offer you.