Niche Market Exit Planning Tips
Selling a Base Metal Refiners and Smelters Business
Owning a base metal refiners and smelters business hasn't always been a bed of roses, but it's been worth the effort. The next step is to position your business for the demands of the business-for-sale marketplace.
The base metal refiners and smelters business-for-sale marketplace is a nuanced environment, full of pitfalls for sellers who aren't prepared for its demands.
Yet what many sellers don't appreciate is that a down economy can present the perfect opportunity to sell a base metal refiners and smelters business.
Valuation Methods
The methods for valuing a base metal refiners and smelters business vary according to your business model and circumstances. However, there are generally three valuation methods appraisers use to determine your company's worth. 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. Finally, the market method determines the worth of your base metal refiners and smelters business based on the sales of similar businesses in your geographic area. A good appraiser will often use multiple valuation methods to arrive at a reasonable estimate. Sellers should take note of the fact that all three valuation methods reward businesses that takes steps to increase assets and income.
Current Market Conditions
No one plans to sell a base metal refiners and smelters business in a down economy. So far, government intervention and promises that the economy is slowly recovering haven't been enough to alleviate many entrepreneur's fears. Despite the risks, sellers need to be cognizant of the fact that there is a large volume of base metal refiners and smelters businesses waiting to be listed until the economy rebounds. When that happens, the buyers' market will become even stronger and have a negative impact on prices. Like it or not, the time to sell your base metal refiners and smelters business may be right now, as long as your willing to adequately prepare your business for the marketplace.
How Much Does It Cost to Sell a base metal refiners and smelters business?
In a base metal refiners and smelters business sale, pricing is based on a number of factors, including the costs incurred during the sale. Good brokerage takes a 10% success fee off the top of the final sale price. Attorneys, accountants and appraisers work for a flat fee that can range from hundreds to thousands of dollars. Furthermore, your time has value, so you may need to include a personal compensation consideration in your expense estimates.
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