With all the time and energy it takes to sell a company, business owners need to keep a positive attitude just to maintain their sanity. But there’s a fine line between being optimistic and being unrealistic. You may have certain expectations for a sale, but the results will ultimately depend on the value of your business, the current market, and the characteristics of your buyer. When putting an ambulance business for sale – as with many things in life – it often helps to hope for the best, but be prepared for the worst.
Know Your Value
Chances are you have a vision of your ideal sale. But is it a realistic one? Often times, sellers hoping to cash out before retirement are disappointed to discover that their business value doesn’t support the amount they need to live comfortably after the sale. Other times, owners become frustrated when it takes longer than anticipated to find a buyer or get a deal done. When you understand value, you can often leverage it to improve the outcome of your sale. Receiving a medical transportation business valuation can help sellers set a realistic price, which may result in a speedier transaction. If business value is less than expected, owners may choose to make value-enhancing changes before going to market. Strategies such as reducing customer concentration or upgrading technological equipment may boost value for buyers, increasing sale potential – and price.
Locate Your Best Buyer
A business is worth what a buyer is willing to pay for it. By identifying the type of buyer who has the most to gain from buying your ambulance company, you may be able to boost your price. If your company is most attractive to someone looking to buy a stable job, your focus will be on increasing cash flow. However, if your company has what it takes to attract a strategic buyer – such as a company that could use your unique assets to enjoy reduced costs or greater market share – you may want to focus on reinvestments that increase long-run returns. But while some buyers may be willing to pay more than others, never assume your best buyer will come knocking on your door. Often times, the buyers willing to pay the most for a company may not even be in the market for a medical transportation acquisition. Business brokers specializing in the ambulance business have the resources and credibility to target and attract your most beneficial buyers.
Be Prepared to Compromise
Sometimes you have to give a little to get a little. Business owners are often hesitant to compromise during negotiations, because they fear that they will receive an unfair deal. No one wants to get the short end of the stick. However, if your inflexibility causes your best buyer to walk, no one wins. Agreeing to work with a buyer by offering seller financing or owner training can result in not only a better price, but a smoother deal. Putting an ambulance service for sale is not an easy process. An experienced industry intermediary will have the finesse to keep negotiations fair while also positioning the seller for the most financially favorable result.