How to Sell Your Bail Bond Business

Mar 28, 2016

Are you thinking about selling your bail bond business? Although bail bonding companies make a fair amount of money, they can be difficult to sell. Due to inconsistent valuation and stifling government regulations, most bail businesses don’t hold their value when sold. The following are a few basic tips that will help you price your business just right before the sale.

What is the Basic Value of Your Business?

The rule of thumb is $50,000 per one million in liability written every year. So you will get about 200k if you write 4 million in liability annually. Many sellers feel like this formula yields an insufficient return, however sellers should at least use this rule to find a base figure for their business.

Selling the Biz

Most people don’t know how the bail bond business model works. Plus the bail bond industry is so regulated that it can be extremely difficult to find buyers that are qualified to purchase bail bond businesses. Many states have succession processes, so check your local laws before considering a buyer.

Market the Business

The business will not sell itself. There are a few commercial websites that owners can post to themselves. Use vibrantly colored flyers to market the sale of the bail bond business for direct mailing. Require potential buyers to sign a confidentiality disclosure before they review the books. Talk to lawyers and a broker to assist with closing the deal to increase the rate of return on your investment. After the initial deal, know that buyers may require financing. If you decide to finance some of the sale, there might be a decent rate of return.

Operating a bail bonds business is hard work, but can be extremely profitable. If you own or want to buy a bail bond agency, you’ll need an experienced payment processor to provide a variety of payment options for your customers. With the EMB suite, your clients will be able to pay with debit, credit, checks, e-checks, and even by web. EMB will ensure your bail bonds merchant account is secure and compliant. Start your application now.

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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending on the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

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