Niche Market Exit Planning Tips
Selling a Barrels and Drums Business
We hear from a lot of business owners who are timid about listing their barrel and drum business. Despite the mood of the market, we think there are still opportunities to receive a good price for your barrel and drum business. Here's what you need to know . . .
Personal and professional concerns surround the sale of a barrel and drum business. In our experience, a common owner concern is how the sale will affect customers and employees.
In order to market a barrel and drum business now, business sellers may need to apply a combination of incentives and techniques.
Valuation Methods
Multiple valuation methods exist for a barrel and drum business. While the income method uses anticipated revenues as a value basis, the asset method focuses on the company's capital, real estate and intellectual assets. In many sales, the most accurate valuation comes from the market method which determines value based on the recent sales of similar businesses. A good appraiser will often use multiple valuation methods to arrive at a reasonable estimate. But regardless of the method that is used, it's always in the seller's best interest to increase revenue and asset values prior to a sale.
Working with Accountants
Accountants lay the financial groundwork for a business sale. From a seller perspective, an accountant can offer personal financial assistance, especially when it comes to handling the disposition of sale proceeds. You may also want your accountant to assist in the preparation of professional financials to present to serious buyers. In many instances, your accountant will be invaluable in evaluating prospective buyers' financial position and buying capacity.
Promoting a barrel and drum business Sale
Successful barrel and drum business sales listings are intentionally promoted to the right prospects. However, confidentiality and other concerns can present challenges, even for sales professionals. The knowledge that your business is being sold almost always converts into negative PR with your customers and vendors. The best way to advertise a barrel and drum business is to enlist the assistance of a business broker who is skilled in locating and contacting prospective buyers.
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