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4 Tips for Selling a Home-based Ambulance Business

Last updated on June 26, 2011 by Sozo Staff

Selling a home-based ambulance is a little different than selling your average company. On one hand, there are challenges to negotiating a business deal without a consistent location. On the other hand, interest in home-based businesses is at an all-time high. Leveraging the unique benefits of your company while protecting confidentiality can help you and a motivated buyer strike a deal that is satisfying to both parties.

Remove Facility Location

Since a home-based business will be automatically relocated when purchased by a new buyer, it’s important to take the facility location out of the sale presentation package. You cannot guarantee the outlook for a market and customers in an untested location, and that will need to be reflected in value. That said, most ambulance business operations occur out of the office, so removing the location from the deal may not have much effect. Additionally, many buyers search specifically for a home-based company because they are looking for flexibility.

Protect Neutrality

Maintaining confidentiality is one of the cornerstones of a successful business sale, and it’s even more crucial when it comes to selling a home-based business. The last thing you want to do is show prospective buyers where you live. For the sake of the deal – and your safety – make sure to conduct negotiations in a neutral space, such as a local coffee shop. Communicating through e-mail, cell phones, or a P.O box is preferable to handing out a home address or phone number. A broker specializing in ambulance or paratransit companies can manage sensitive negotiations while protecting the privacy of your business.

Demonstrate Financial Benefits

Most buyers of home-based businesses are people looking for a full-time job with the added benefit of acting as their own boss. They may not even be familiar with the medical transportation industry. Rather than abstracts like long-term growth potential, financial buyers want to know your business is capable of bringing in money from day one. Recasting financials correctly is necessary to demonstrate the total financial benefit of ownership. This involves removing one-time expenses, owner perks, before-interest earnings, and anything else that could distract from the potential for immediate profits.

Show Flexibility

Agreeing to offer seller financing can immediately open up your pool of potential buyers. This is even truer in the case of home-based businesses. Most people interested in a home-based ambulance business do not have much start-up capital. Some banks may be wary of lending money for a home-based enterprise, even a successful one. By sharing a very small amount of risk with your buyer, you may gain big rewards.

Filed Under: Transportation

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