O'FALLON, IL--(Marketwired - May 11, 2016) - Bubba Mills, CEO of Corcoran Consulting and Coaching, outlines the best practices valuation and exit strategy for a mortgage or real estate business. Something to keep in mind is that more than likely these businesses, in the future, will be sold by Baby Boomers to Millennials or Generation X.
A recent Pew Research Study says Millennials have now surpassed Baby Boomers in the U.S. (75.4 million versus 74.9 million), and Generation X is projected to surpass Boomers by 2028.
Mills is one of the industry's leading consultants and coaches whose clients include 71 of the Top 250 real estate professionals in the country, with a total of 94 awards, according to the Wall Street Journal (WSJ) and REAL Trends 2015 report based on Team Volume and Team Units.
"The exit strategy is about the end results, and building a retirement plan for you and your family," says Mills. "However, the art of appraisal can sometimes be difficult to measure as a service provider."
Here are some key things to keep in mind when you are developing a valuation of a mortgage or real estate business:
- Numbers Don't Lie -- To entice buyers, you need to have real numbers to show what your business can do for them -- exactly how much money your business is bringing in and can bring in. That means you need clean records with specifics.
- Databases Are King -- You must be able to show buyers your database. All those contacts, former clients, and potential buyers and sellers you met over the years are worth money.
- Business Plan Can Seal The Deal -- Create a worksheet that spells out the mission statement, the vision, the philosophy and goals of your business. This helps the buyer feel secure and it helps you determine how you can leave the business -- with cash, residuals or both.
In regards to the structure of the sale, Mills says there are typically three ways to do it:
- Sell the business outright.
- Pay half upfront and provide profits over a short period of time.
- Put a small deposit down, and provide funds over a longer a period of time.
"You and the buyers have a vested interest in the business working properly and being profitable, especially if you go with a staggered approach. A strong transition helps prevent key elements from falling into the cracks," advises Mills.
"Don't go it alone. Enlist the help of a consultant, a CPA and a lawyer. Make them your board of directors in charge of succession," concludes Mills.
To receive a free value business analysis sheet, please email Bubba Mills at successteam@corcorancoaching.com.
About Corcoran Consulting & Coaching
Corcoran Consulting & Coaching is an international consulting and coaching company that specializes in performance coaching and the implementation of sound business systems into Real Estate Companies, Mortgage Companies and Small Businesses. To find out more about Corcoran Consulting & Coaching, call 1-800-957-8353 or visit us at www.CorcoranCoaching.com.
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Contact Information:
CONTACT:
Jennifer Heinly
J&J Consulting
949-716-9829
jennifer@jandjconsulting.net
