Niche Exit Planning Strategies
Selling a Designers Commercial and Industrial Business
Few entrepreneurs relish the idea of selling a business in a struggling economy. Yet designers commercial and industrial businesses continue to be sold at a brisk pace, outperforming the sales of many other types of businesses.
We hear it all the time: "I'm waiting until the economy recovers to list my business."
Many business owners don't know that designers commercial and industrial businesses are still a hot commodity, to the extent that sellers have properly prepared them for the marketplace.
Valuation Methods
Professional appraisers can use three methods to determine the value ofa designers commercial and industrial business: The income method, the asset method and the market method. Appraisals based on the asset method gauge value as a factor of the company's real property and non-tangible assets; appraisals based on the income method consider the business's anticipated revenue. 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.
Benefits of Third-Party Assistance
Rarely, if ever, do owners sell a designers commercial and industrial business without outside assistance. The enlistment of a qualified business broker is an excellent first step. Other early hires include the professionals you will need to valuate the business, prepare financial statements and navigate legal considerations. The early recruitment of external resources reduces your risk and results in a more predictable final outcome.
The Emotions of a Business Sale
Business sellers sometimes struggle to handle the emotions of a sale. Be prepared to experience everything from elation to remorse during the sale of your business. Instead of feeling guilty about your emotions, take the time to process them with a mentor or friend. At the same time, it's helpful to consult with people who can help limit the influence of your emotions on negotiations and other aspects of the sale process.
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