Smart Exit Planning Strategies for Niche Markets
Selling a Glass Furniture Tops Business
You've heard the naysayers - now isn't the time to sell a glass furniture tops business. But what they don't know is that many entrepreneurs see glass furniture tops businesses as a smart business investment.
According to the experts, there is currently a large volume of shadow inventory in the glass furniture tops business market -- businesses that are waiting to be listed until the economy recovers.
Undaunted by economic conditions, many glass furniture tops business sellers are achieving their sale goals through deliberate sale strategies.
Sale Documents
We run into a lot of glass furniture tops business sellers who intend to wait until the final contract to negotiate details. Big mistake. With few exceptions, sale structure is hammered out early, in the Letter of Intent . The price described in the Letter of Intent may fluctuate based on information that is revealed during due diligence, but the inclusion of new requirements in the final contract could be a deal killer. For sellers, that makes a close review of the Letter of Intent more than a formality - it's a critical juncture on the path to closing.
Business Valuation
Professional appraisers can use three methods to determine the value ofa glass furniture tops business: The income method, the asset method and the market method. The income method determines value based on the amount of income the business is expected to generate. The asset method, on the other hand, is based on the value of tangible and non-tangible assets (e.g. brands and trademarks). Finally, the market method determines the worth of your glass furniture tops business based on the sales of similar businesses in your geographic area. 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.
What to Expect in a Glass Furniture Tops Business Sale
It's impossible to predict the emotional highs and lows you will experience during the sale of your glass furniture tops business. Given your personal investment, you may also experience disappointment in the market's assessment of your company's value. Although it isn't easy, you can mitigate the emotional impact of a glass furniture tops business sale by setting realistic expectations before you list your business.
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