Exit Planning Techniques By Market
Selling a Full Service Laundries Business
No one said selling your business in a depressed economy would be easy. But selling your full service laundries business doesn't have to be as daunting as it sounds.
You've invested too much in your full service laundries business to let it be sold for less than its worth. But unless you adequately prepare for the sale, some lucky buyer may walk away with a huge discount.
Despite the conventional wisdom, we believe current economic conditions are right for selling a full service laundries business. Here's how to do it . . .
Economic Considerations
When you sell a full service laundries business, there are a number of variables you need to consider. Interest rates, spending, inflation, and other variables directly influence how long your full service laundries business will be on the market as well as its sales price. But at Gaebler, we advise our business partners to look beyond simple economic data when determining whether it's the right time to sell a full service laundries business. If you don't believe your full service laundries business would sell for top dollar right now, what can you do to make it more attractive to the marketplace? Increase profitability? Build brand visibility?. When it comes to selling a full service laundries business, successful sales sales often boil down to the business itself - not the economy.
Valuation Methods
Multiple valuation methods exist for a full service laundries business. 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. As a safeguard, consider conducting appraisals using variations of multiple appraisal methods. Sellers should take note of the fact that all three valuation methods reward businesses that takes steps to increase assets and income.
Sale Documents
In a full service laundries 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. So after consulting with your broker and attorney, make sure you're comfortable with the terms of the Letter of Intent. If not, everything you do to close the sale of your full service laundries business may be a waste of time.
Share this article
Additional Resources for Entrepreneurs