Niche Market Exit Planning Tips
Selling a Bathroom and Kitchen Contractors Business
Although a bathroom and kitchen contractors business may not be completely recession-proof, the best companies can survive nearly any storm. All it takes is a strategy to identify solid prospects and convert them to buyers.
Business buyers are a timid lot, even more so now that they are facing an uncertain economic landscape.
Qualified buyers are constantly looking for attractive bathroom and kitchen contractors businesses. Not surprisingly, buyers expect to receive value for their dollars - and that means sellers need to demonstrate that their businesses are capable of delivering anticipated returns.
Sale Costs
In a bathroom and kitchen contractors 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. Professional consultations can also represent a significant expense during the course of a bathroom and kitchen contractors business sale. Likewise, you'll need to consider how much it will cost to promote the sale as well as the lost time it will take for you and your team to navigate the sale process.
Average Timeframes
Hoping for a quick bathroom and kitchen contractors business sale? You may be disappointed. The amount of time your business will be on the market depends on how aggressively it is priced and marketed. To adequately prepare your business listing, plan on spending six months to a year prior to listing. In a good market, an attractive bathroom and kitchen contractors business can sell in as little as a few months, although it can take more than a year to find the right buyer after the business is listed.
Valuation Methods
The methods for valuing a bathroom and kitchen contractors 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 bathroom and kitchen contractors 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. To drive up your sale price, position your bathroom and kitchen contractors business by improving variables like assets, revenue and profitability during the years leading up to a sale.
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