Exit Planning Tips
Selling a Hair Removal Business
You've heard the naysayers - now isn't the time to sell a hair removal business. But what they don't know is that many entrepreneurs see hair removal businesses as a smart business investment.
The economy isn't the only thing that is uncertain these days. So are hair removal business buyers, many of whom are waiting to pull the trigger on their next acquisition.
The economy hasn't squashed the market for hair removal businesses. 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.
Business Valuation
Professional appraisers can use three methods to determine the value ofa hair removal 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. All three methods have multiple variations and it's not uncommon for appraisers to use a combination of the three to determine the value of your business. Sellers should take note of the fact that all three valuation methods reward businesses that takes steps to increase assets and income.
How to Choose a Business Broker
Good business brokers inevitably produce better business sales. No two hair removal business sales are alike. That means you'll want to look for a broker who has been around the block and possesses substantial experience selling businesses in the industry. As a practical matter, you'll also want to focus your search on brokers who have pre-existing relationships with attorneys, appraisers, and other professionals who can provide assistance at various stages of the process.
Average Preparation Time
There are no effective shortcuts for selling a hair removal business. Buyers want to see growth trends, healthy profits and other variables that increase the likelihood of long-term success. Additionally, prospective buyers usually request documentation that allows them to understand the business's daily workflows and operational strategy. Unless you have already started planning for your hair removal business sale, it's going to take at least six months to prepare your business. A more likely scenario is that it will take more than a year to create the conditions necessary to receive the maximum sale price.
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