Niche Market Exit Planning Tips
Selling a Boat and Boat Trailer Storage Business
Is the economy still a little shaky for a business sale? Sure it is. Yet boat and boat trailer storage businesses haven't heard the news and are reporting steady action on the business-for-sale market.
If you listen to many entrepreneurs, there never seems to be a good time to put a small business on the market.
They require careful planning and an intentional strategy that emphasizes your boat and boat trailer storage business's strengths and meets the needs of the marketplace. As a business seller, you need to go into the process with the mental goal of presenting your business in the best possible light.
Moving On
So you've decided to sell your boat and boat trailer storage business. That's great -- but have you considered what's next? Are you moving on to another business venture? Are you retiring? Although next steps may seem inconsequential, they actually play an important role in shaping the structure of the sale of your boat and boat trailer storage business. In today's market, many buyers expect seller financing - a concession that might not be a possibility for sellers whose next step requires the entire proceeds at the time of the sale.
Working with Accountants
Accountants lay the financial groundwork for a business sale. Most boat and boat trailer storage business have significant tax consequences requiring the input of a qualified accountant. Brokers often advise their clients to have an accountant perform an audit of the business prior to sale. In certain instances, it may be appropriate to ask your accountant to vet the financials of prospective buyers, run credit checks or even structure the terms of a seller-financed deal.
Valuation Methods
Professional appraisers can use three methods to determine the value ofa boat and boat trailer storage business: The income method, the asset method and the market method. The income method determines value based on the amount of income the business is expected to generate. The asset method, on the other hand, is based on the value of tangible and non-tangible assets (e.g. brands and trademarks). 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. Sellers should take note of the fact that all three valuation methods reward businesses that takes steps to increase assets and income.
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