When is the Right Time to Buy an Answering Service?
March 22, 2016
We talked about when it is the right time to sell your telephone answering service and when it is the wrong time. These posts were both from a seller’s perspective. What about the buyer? While seller and buyer timing does correspondingly mirror each other, the buyer has some additional considerations.
Here are five situations when it is an ideal time to buy an answering service:
When You Have Cash: Although you can buy an answering service using seller financing, having cash to pay off the seller at closing will grab their attention and remove risk on their part. When in a sellers’ market, as is the case today, a cash offer may be the only option. After all, why would a seller accept a payment plan from you when another cash buyer is ready to move forward?
When You Have Financing: If you don’t have cash readily available, the next best option is a firm resource to finance the deal. However, make sure the money is truly available. Many a deal has been scuttled when a lending institution changed their mind, their terms, or their conditions at the last minute. Don’t put yourself or the seller in that situation.
When Your Operation is Working as it Should: Having your own answering service smoothly humming along puts you in a great position to make an acquisition. After all if your staff is already struggling with internal issues, they will not have time to devote to the acquisition – or will ignore your existing clients in favor of the new ones. Avoid both of these risks when your existing answering service is running as it should.
When Your Last Acquisition is Fully Optimized: Too often acquisition-minded answering service owners are so busy chasing the next deal that they ignore the opportunities awaiting them in the deal they just closed. I talk about this often: mine all you can from one purchase before moving to the next one.
When an Opportunity Presents Itself: Although it is unethical to exploit another answering service’s misfortune, being aware of changing situations and available to purchase a struggling operation can provide the opportunity to acquire a service at a favorable price. Just remember to be fair in the process. Word gets around fast of unscrupulous vultures who take advantage of struggling answering service owners.
These five situations reveal when to consider buying an answering service. However, the optimum, ideal time to buy an answering service is when #1 or #2 exists, along with #3, #4, and #5. Be ready, be on the lookout, and be nice.
Janet Livingston is the president of Call Center Sales Pro, a premier sales and marketing service provider for the call center and telephone answering service industry. Contact Janet at email@example.com or 800-901-7706.
Peter Lyle DeHaan is a freelance writer from Southwest Michigan.
Should You Use Direct Mail as a Marketing Tool For Your Answering Service?
If you’ve networked with other telephone answering service owners or attended many TAS meetings,, the subject of direct mail as a marketing tool is ...
Email Opt-Out Traps to Avoid
A great way to market your call center or answering service is with email marketing: you collect email addresses and send regular messages that contai...
Six Steps to Outsource Your Healthcare Call Center
Regardless of the reasons for outsourcing your healthcare call center work, pursuing a reasoned path is the surest way to a successful outcome. Here a...
7 Tips to Maximize the Sale Price of Your Answering Service
At the end of the year, some telephone answering service owners think about selling their business. They want to complete the sale by year-end. Often ...
How to Maximize the Valuation of Your Answering Service
Smart business owners are always looking for ways to increase the value of their business. You should, too. Whether or not you plan to sell your telep...
Outsource Your Healthcare Call Center Work to Reduce Costs
While a common reason to outsource healthcare call center services is to increase quality, an even more likely motivation is to save money. And saving...
Outsource Your Healthcare Call Center Work to Counter Labor Issues
Many areas in healthcare suffer from a shortage of qualified personnel. One common area is nurses, and many healthcare call centers hire nurses to wor...
What to Do When You Struggle with Sales and Marketing
Every telephone answering service and outsourcing call center owner wants to grow his or her business. There are only two ways to do so: growth throug...