Exit Planning Tips
Selling a Hair Accessories Shop
Market perceptions play a role in your ability to sell a hair accessories shop. Yet great values are always received well in the business-for-sale marketplace. All it takes is a strategy to identify solid prospects and convert them to buyers.
You need to get a good price for your hair accessories shop. To get there, you'll need to set realistic expectations and follow a deliberate selling strategy.
The economy hasn't squashed the market for hair accessories shops. Like always, unprofitable and poorly positioned businesses struggle to find buyers while sellers who have invested time and effort to prepare their sale are being rewarded in the marketplace.
Brokerage Benefits
Brokers give hair accessories shop sellers distinct advantages in the marketplace. Right out of the gate, brokers know how to help their clients properly prepare their businesses for a sale. More importantly, brokers have the ability to identify serious buyers and maintain confidentiality throughout the sale process. Although you will pay a fee for brokerage, it's generally worth it because the end result will be a higher sales prices and more favorable terms.
Timing the Market
Timing is everything when it comes to selling a hair accessories shop. A depressed economy means lower interest rates; lower interest rates increase the number of investors willing to take a chance on hair accessories shops. When the economy recovers there will be more hair accessories shop buyers on the market, but higher interest rates could present challenges. At Gaebler, we recognize the value of timing the sale of your hair accessories shop. But we think it's more important to properly position your business for current market conditions -- whatever they may be.
Business Valuation
The methods for valuing a hair accessories shop vary according to your business model and circumstances. However, there are generally three valuation methods appraisers use to determine your company's worth. 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). 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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