Exit Planning Tips
Selling a Health and Diet Food Store
Many business leaders say that now isn't the time to try to sell a health and diet food retailer. At Gaebler, we think it's a great time to sell a health and diet food retailer. Here's why . . ..
An assortment of hurdles and obstacles stand between you and the successful sale of your health and diet food retailer.
The business-for-sale market is extremely dynamic. So if you're waiting for the perfect market conditions to sell your health and diet food retailer, you could be waiting a while. If your business is ready to be sold, the time to sell is now. The key is to go into the sale with your eyes open and with complete awareness of market condition.
Valuation Methods
Multiple valuation methods exist for a health and diet food retailer. 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. To drive up your sale price, position your health and diet food retailer by improving variables like assets, revenue and profitability during the years leading up to a sale.
The Emotions of a Business Sale
Coping with the emotions of a business sale can be difficult, even under the best of circumstances. You probably have good reasons for selling your health and diet food retailer now, but that doesn't make the emotions you will experience any easier. It's important to allow yourself time to process your emotions during your exit. However, when it comes to negotiating a successful deal, there is no room for your personal emotions. To keep the sale on track, you'll need to seek the advice of a broker or another objective third-party counselor.
Signs You're in Over Your Head
Many health and diet food retailer are tempted to save brokerage fees by selling their businesses on their own. Although there are exceptions, solo sales typically take longer and are less productive than brokered sales. 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. Likewise, if buyers seem to express interest but quickly exit when you quote the asking price, it's a sign that your health and diet food retailer is priced out of the market. Hire a broker and conduct a professional appraisal ASAP.
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