Niche Exit Planning Strategies
Selling a Distribution Services Business
Does the economy have you down? For exiting owners, the idea of listing their company now can be terrifying. Fortunately, a distribution services business sale isn't as scary as it seems.
An assortment of hurdles and obstacles stand between you and the successful sale of your distribution services business.
If you're ready to move on, now is the right time to sell your distribution services business.
Business Valuation
Professional appraisers can use three methods to determine the value ofa distribution services 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.
Pre-Sale Checklist
There is a lot of work that needs to be done before you're ready to sell your distribution services business. Perhaps the most important pre-sale consideration is to right-size your expectations to the realities of the market. Once your expectations are in the ballpark, you can move on to making your business presentable to prospective buyers.
Working with Appraisers
Next to your broker, a skilled appraiser is the person most capable of adding value to the price of your distribution services business. Armed with a professional appraisal, both you and your broker can enter the negotiation stage with confidence. Following the appraisal, you may choose to delay your sale until you can increase the value of assets and revenue.
Share this article
Additional Resources for Entrepreneurs