Niche Market Exit Planning Tips
Selling a Bottle Caps and Seals Business
There are few things as intimidating as selling a business in a sluggish economy. Fortunately, a bottle caps and seals business sale isn't as scary as it seems.
Business sellers are notorious for second-guessing themselves about the right time to put their companies up for sale.
Many business owners don't know that bottle caps and seals businesses are still a hot commodity, to the extent that sellers have properly prepared them for the marketplace.
Selecting a Broker
Good business brokers inevitably produce better business sales. In the bottle caps and seals business industry, experience is a must-have characteristic for qualified brokerage. The best brokers should also come with a list of references, a demonstrable track record and a proven plan for selling bottle caps and seals businesses.
Valuation Methods
Multiple valuation methods exist for a bottle caps and seals business. Appraisals based on the asset method gauge value as a factor of the company's real property and non-tangible assets; appraisals based on the income method consider the business's anticipated revenue. Finally, the market method determines the worth of your bottle caps and seals 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.
Sale Preparation Timeframes
There are no effective shortcuts for selling a bottle caps and seals business. Since buyers prefer to see evidence of future cash flow, you'll want to to strategically lock in cash flows and increase profits before you list the business. Next, the business will need to be documented in professional financial statements and manuals that facilitate the ownership transition. Unless you have already started planning for your bottle caps and seals business sale, it's going to take at least six months to prepare your business. A more likely scenario is that it will take more than a year to create the conditions necessary to receive the maximum sale price.
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