Exit Planning Tips
Selling a Hardwood Mill
Over the past few years, the hardwood mills business industry has seen more than its share of fluctuations in business values. Many sellers have exited their companies under less-than-ideal circumstances. Yet it's still possible to achieve personal and professional goals when selling a hardwood mills business in the current economic environment.
You survived all the ups and downs of owning a business. Next, you'll need to prepare yourself to address the rigors of selling a hardwood mills business.
If you're looking for a reason to wait to put your business on the market, you'll find it. With hard work and dedication, your hardwood mills business can be sold at or above fair market value right now.
The Emotions of a Business Sale
Business sellers sometimes struggle to handle the emotions of a sale. Although you might think you're ready to exit your business, selling and separating from a hardwood mills business scan stir up a range of emotions. Instead of feeling guilty about your emotions, take the time to process them with a mentor or friend. But since it's important to remain as objective and rational as possible, we also recommend establishing a firm sale strategy and negotiation team to limit the impact of your personal feelings on the sale outcome.
After the Sale
Due diligence has ended and you're ready to close on the sale of your hardwood mills business. All that stands between you and the sale proceeds is a few signatures, right? Not so fast. The transition to the new owner, the distribution of sale proceeds and other issues can weigh heavily on sellers. If there are pending details that still need to ironed out, address them ASAP to ensure a smooth closing and transition.
Valuation Methods
The methods for valuing a hardwood mills business vary according to your business model and circumstances. However, there are generally three valuation methods appraisers use to determine your company's worth. 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. To drive up your sale price, position your hardwood mills business by improving variables like assets, revenue and profitability during the years leading up to a sale.
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