Niche Market Exit Planning Tips
Selling a Bulletin and Directory Boards Business
We hear from a lot of business owners who are timid about listing their bulletin and directory boards business. Despite the mood of the market, we think there are still opportunities to receive a good price for your bulletin and directory boards business. Here's what you need to know . . .
It takes dedication to sell a bulletin and directory boards business under the best of circumstances. In the current market, you'll need to redouble your efforts and get serious about convincing prospects that your company is a good investment.
Yet what many sellers don't appreciate is that a down economy can present the perfect opportunity to sell a bulletin and directory boards business.
Sale Preparations for Your Bulletin & Directory Boards Business
The outcome of a business sale is largely determined prior to a market listing. Profitable bulletin and directory boards business sales begin with a comprehensive strategy that incorporates planning, preparation and market positioning. Branding, market positioning, and revenue growth take time, but they directly influence the price your bulletin and directory boards business will command in the marketplace. But your efforts to improve your company's position and profitability will only be effective if you invest similar effort into the preparation of accurate financial statements for buyers.
Valuation Methods
Professional appraisers can use three methods to determine the value ofa bulletin and directory boards 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.
Legal Considerations
It pays to invest in first-rate legal counsel when you sell a bulletin and directory boards business. A good lawyer serves a variety of functions during the process. In addition to reviewing the letter of intent, sales contract, and other documents, your attorney should be capable of advising you about due diligence and the tax consequences of the sale. We recommend hiring an attorney early in the process to gain insights about the legal consequences of various sale outcomes.
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