Smart Exit Planning Strategies for Niche Markets
Selling a Golf Associations 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 golf associations business, it's in your best interest to maximize the sales price through the application of proven sales techniques.
The process of selling a golf associations business can be one of the most stressful experiences of your entrepreneurial career.
The good news is that ambitious entrepreneurs continue to see golf associations businesses as a smart business investment -- and the market is rewarding owners who are willing to invest time and energy in their sale.
Signs You're in Over Your Head
Many golf associations business are tempted to save brokerage fees by selling their businesses on their own. But for every successful unassisted sale, several other golf associations businesses sell below market value or languish on the market for years without attracting the interest of qualified buyers. As a rule, no business should sit on the market for more than six months without attracting the interest of at least a handful of qualified buyers. When buyers fail to exhibit substantive interest, it could indicate unrealistic pricing or an inferior selling strategy. The remedy is professional brokerage or a consultation with more experienced sellers.
Average Preparation Time
There are no effective shortcuts for selling a golf associations business. For starters, the financials need to demonstrate a track record of profitability and growth. Next, the business will need to be documented in professional financial statements and manuals that facilitate the ownership transition. Since all of this takes time and effort, a golf associations business can rarely be ready for the marketplace in less than six months. However, to command the highest price, you'll probably need to spend one to two years preparing and positioning your business for buyers.
Valuation Methods
Multiple valuation methods exist for a golf associations 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. 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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