Niche Exit Planning Strategies
Selling a Dog and Cat Food Wholesale and Manufacturers Business
We hear it all the time: 'This economy is a hostile environment for a business sale.' However, dog and cat food wholesale and manufacturers businesses continue to sell at a brisk pace, regardless of the economy.
Dire economic forecasts have forced many dog and cat food wholesale and manufacturers business sellers into hibernation. Instead of listing their companies now, they're hanging back until they see signs of an economic recovery.
Despite the conventional wisdom, we believe current economic conditions are right for selling a dog and cat food wholesale and manufacturers business. We'll tell you what you need to know to achieve a successful sale outcome
Sale Documents
In a dog and cat food wholesale and manufacturers business sale, the Letter of Intent contains the vital elements of the deal between the buyer and the seller . If you are seeking buyer concessions, the time to address them is before the Letter of Intent is drafted. Never sign a Letter of Intent until it has been properly reviewed by your attorney and you are in complete agreement with everything it contains.
Advertising Your Sale
Successful dog and cat food wholesale and manufacturers business sales incorporate comprehensive advertising plans. However, confidentiality and other concerns can present challenges, even for sales professionals. The knowledge that your business is being sold almost always converts into negative PR with your customers and vendors. Business brokers are skilled at publicizing dog and cat food wholesale and manufacturers business sales while maintaining the confidentiality that is critical to your business.
Business Valuation
Professional appraisers can use three methods to determine the value ofa dog and cat food wholesale and manufacturers 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.
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