Tips to Improve Exit Planning
Selling a Juggling Instruction Business
We hear from a lot of business owners who are timid about listing their juggling instruction business. Despite the mood of the market, we think there are still opportunities to receive a good price for your juggling instruction business. Here's what you need to know . . .
Business sellers are notorious for second-guessing themselves about the right time to put their companies up for sale.
Too often juggling instruction business owners fail to receive fair market value for their businesses. With the right strategy, your sale doesn't have to end that way.
Valuation Methods
The methods for valuing a juggling instruction 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. 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.
The Emotions of a Business Sale
Business sellers sometimes struggle to handle the emotions of a sale. You probably have good reasons for selling your juggling instruction business 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. At the same time, it's helpful to consult with people who can help limit the influence of your emotions on negotiations and other aspects of the sale process.
Sale Documents
In a juggling instruction business sale, the Letter of Intent contains the vital elements of the deal between the buyer and the seller . If you are seeking buyer concessions, the time to address them is before the Letter of Intent is drafted. For sellers, that makes a close review of the Letter of Intent more than a formality - it's a critical juncture on the path to closing.
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