Business Exits By Industry
Selling a Canoe and Kayak Equipment and Supplies Business
The business-for-sale marketplace has experienced no shortage of uncertainty over the past several years. But canoe and kayak equipment and supplies businesses continue to sell at a brisk pace, regardless of the economy.
Business sellers are notorious for second-guessing themselves about the right time to put their companies up for sale.
If you're ready to move on, now is the right time to sell your canoe and kayak equipment and supplies business.
Timing the Market
Now may be the best time to sell a canoe and kayak equipment and supplies business. A depressed economy means lower interest rates; lower interest rates increase the number of investors willing to take a chance on canoe and kayak equipment and supplies businesses. As the interest rates rise, it will be more difficult for buyers to make the numbers work in their favor. So we see market timing as a concern that can be easily mitigated by applying fundamental sales strategies and adequately preparing your company for buyers.
Leveraging Industry Connections
There are a lot of different places to look for canoe and kayak equipment and supplies business buyers. Online business-for-sale databases have value, although they appeal to an exceptionally wide base of prospects. For more targeted lead generation, consider tapping into your network of industry contacts. When leveraging industry relationships for sales prospects, you'll need to be cognizant of the potential for competitors to use knowledge of your sale against you in the marketplace. Use good sense in restricting the flow of information within the industry and focusing your efforts toward trusted industry allies.
Valuation Methods
Professional appraisers can use three methods to determine the value ofa canoe and kayak equipment and supplies business: The income method, the asset method and the market method. 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. 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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