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Selling a Carports Business
It's a misconception that no one is buying carports businesses these days. Savvy entrepreneurs see carports business opportunities as a path to short-term profits and long-term growth. There aren't any guarantees, but if you adhere to fundamental business sale concepts, you can likely get a good price for your business.
Personal and professional concerns surround the sale of a carports business. In our experience, a common owner concern is how the sale will affect customers and employees.
Many business owners don't know that carports businesses are still a hot commodity, to the extent that sellers have properly prepared them for the marketplace.
Business Valuation
Professional appraisers can use three methods to determine the value ofa carports 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. All three methods have multiple variations and it's not uncommon for appraisers to use a combination of the three to determine the value of your business. Sellers should take note of the fact that all three valuation methods reward businesses that takes steps to increase assets and income.
Average Preparation Time
There are no effective shortcuts for selling a carports 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. At a minimum, plan on spending six months preparing your carports business for the marketplace. A more likely scenario is that it will take more than a year to create the conditions necessary to receive the maximum sale price.
Post-Sale Details
Due diligence has ended and you're ready to close on the sale of your carports business. All that stands between you and the sale proceeds is a few signatures, right? Not so fast. The transition to the new owner, the distribution of sale proceeds and other issues can weigh heavily on sellers. If there are pending details that still need to ironed out, address them ASAP to ensure a smooth closing and transition.
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