Business Exits By Industry
Selling a Coated Fabrics Retail Business
Don't believe anyone who tells you it's easy to sell a coated fabrics retail business. A lot of things need to happen before you can successfully exit your business. Good advice can be hard to come by, so we've put together a few proven suggestions to help you see your sale through to a profitable conclusion.
It's a fact: Successful business sales take time.
Yet everyday, hundreds of listed coated fabrics retail businesses manage to pique the interest of qualified buyers. They do it by paying attention to the details that other business sellers overlook.
Business Valuation
Professional appraisers can use three methods to determine the value ofa coated fabrics retail 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.
Timing the Market
Worried about timing? Believe it or not, this could be an advantageous time to put a coated fabrics retail business up for sale. A depressed economy means lower interest rates; lower interest rates increase the number of investors willing to take a chance on coated fabrics retail 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.
Working with Appraisers
An experienced appraiser is part and parcel of a successful coated fabrics retail business sale. Armed with a professional appraisal, both you and your broker can enter the negotiation stage with confidence. If you're disappointed with the appraiser's estimate of your company's worth, you have the option of seeking a second opinion. However, it's more often the case that you will need to adjust your expectations of your business's value to buyers.
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