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Selling a Commercial and Graphic Artists Business
A lot can go wrong during the sale of a commercial and graphic artists business these days. More than ever before, it's important for sellers to know the tactics and techniques that are being used to maximize sales price and achieve desired sale outcomes.
Dire economic forecasts have forced many commercial and graphic artists business sellers into hibernation. Instead of listing their companies now, they're hanging back until they see signs of an economic recovery.
If your exit strategy involves selling a commercial and graphic artists business in this environment, you need to apply the right combination of preparation, strategy and common sense.
Before You Sell
There is a lot of work that needs to be done before you're ready to sell your commercial and graphic artists business. Perhaps the most important pre-sale consideration is to right-size your expectations to the realities of the market. After you have consulted with a business broker to right size your expectations, you'll need to add several items to your checklist, including financial statement preparation, pre-sale appraisals, financial planning, market positioning and other tasks designed to communicate value to prospective buyers.
Valuation Methods
Professional appraisers can use three methods to determine the value ofa commercial and graphic artists 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. Finally, the market method determines the worth of your commercial and graphic artists 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.
Broker vs. No Broker
When selling a commercial and graphic artists business, you have two choices: Hire a broker to facilitate the sale or perform the sale unassisted. Is there a cost associated with hiring a broker? Sure - about 10% of the final sale prices. But a good broker will make selling your commercial and graphic artists business much less painful. You can also expect to receive a higher sales price for your business in a broker-assisted deal.
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