The CRC National Blog
Tips For Sale of Your Court Reporting Agency
Posted by admin on Jul.06, 2012 in Uncategorized
When a business is no longer desired, regardless of the service provided or material produced, it must be sold or the ownership transferred to another individual or corporation. If this business is a court reporting agency, with a full backing of clients and current services, it shouldn’t be difficult for the current owner to transfer the title of the company. There are several different options to selling a court reporting agency, and the owner and potential buyer need to agree upon a particular method before the ownership transfer may take place. Understanding each method will help a seller determine the best option for their business.
An outright sale is when the court reporting agency is sold with the one time exchange of cash. Generally, this is done when the owner of the reporting agency needs money quickly and just wants out of the business. Typically, the price of the business is reduced in order to sell the agency quickly. If the owner wants to receive top dollar for the reporting agency, this is not usually the best method to use.
There are very few times where someone has enough cash to flat out buy a company, especially for the desired asking price. In order to buy the company, it’s possible for the owner and the buyer to come to an agreement where the buyer pays a specified amount of money over a period of time. This method is best suited for both the buyer and seller. The seller is able to receive closer to the desired asking price and the buyer, who probably is not able to front the cash, is able to purchase the agency eventually, over the course of time.
There are times when a business owner, such as an owner of a court reporting agency, simply wants to get away and not deal with the company. When this occurs, they are able to come up with a lease agreement with a desired buyer. This is similar to leasing out an apartment and other property, as the desired individual pays a certain amount each and every month in order to take over the daily tasks of running the court reporting agency. This is a rather tricky agreement to come to, and it takes specialized paperwork.
Points to Remember
When it comes to selling a court reporting agency, there are several keeps points to keep in mind in order to receive not only the best price for the company but in the most timely fashion, such as:
- Money necessary to sell
- Outright is faster, not necessarily better
- Gradual sale most beneficial
- Test waters with lease agreement
For starters, you need to determine how much money you need to make it worth your wild. After you receive the determine value of the company, you are able to proceed from there. If you need the money right away, your best bet is to go with the outright sale. The outright sale gives you money the fastest, but it also gives you the smallest return on investment. If money is not instantly necessary, a gradual sale is beneficial as you slowly transfer ownership of the company over until the desired buyer is able to provide all the necessary money. If you are not sure about selling the company, you have the lease agreement method, which although is sometimes problematic, allows you to test out the waters before diving head first.
Selling your company often takes a leap of faith, so educating yourself before jumping head first into uncharted territory helps ensure the outcome proves more successful.
Looking For Guidance For Your Retirement? Download Our Free Guide