Niche Exit Planning Strategies
Selling a Diapers and Diaper Services Business
Business sellers have diverse personal and professional goals for the sale of their companies. But no matter what you expect from the sale of your diapers and diaper services business, it's in your best interest to maximize the sales price through the application of proven sales techniques.
You survived all the ups and downs of owning a business. Next, you'll need to prepare yourself to address the rigors of selling a diapers and diaper services business.
The economy hasn't squashed the market for diapers and diaper services businesses. And the ones that are commanding the highest price tags are the ones with sellers who are committed to the sale process.
Valuation Methods
Professional appraisers can use three methods to determine the value ofa diapers and diaper services 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. Using recent diapers and diaper services business sales as its foundation, the market method factors market conditions into the valuation process. 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.
Professional Appraisals
Next to your broker, a skilled appraiser is the person most capable of adding value to the price of your diapers and diaper services business. Leading industry appraisers equip sellers with a value gauge that can be accessed during negotiations. Even though you may disagree with the appraiser's value estimates, it's important to give your appraiser the information and independence he needs to present an objective opinion. To ensure accuracy, ask your broker to provide references for appraisers with industry experience.
Timing the Market
Now may be the best time to sell a diapers and diaper services business. Although the economy is generally struggling, low interest rates make diapers and diaper services businesses more attractive to entrepreneurs who want to get in the game. Sooner or later, rates will rise, increasing the risk for prospective buyers of diapers and diaper services businesses. 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.
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