Exit Planning Advice
Selling a Kaleidoscopes Business
A good business is about more than dollars and sense. To make your kaleidoscopes business what it is today, you've had to fully invest yourself in its success. But the hard work isn't done yet. Before you can make a graceful exit, you will have to invest yourself in your business sale.
The buzz in the marketplace is that now isn't the right time to sell a kaleidoscopes business. Consequently, sellers are holding their businesses off the market until they are sure the market will sustain their asking prices.
If you're ready to move on, now is the right time to sell your kaleidoscopes business.
Valuation Methods
Professional appraisers can use three methods to determine the value ofa kaleidoscopes business: The income method, the asset method and the market method. 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. To drive up your sale price, position your kaleidoscopes business by improving variables like assets, revenue and profitability during the years leading up to a sale.
Handling Unexpected Outcomes
Every business seller dreams of a fast sale and a fat payday. But it's highly unlikely that the sale will meet all of your expectations, especially if your initial estimates were created without the benefit of a solid appraisal or market knowledge. Surprises are inevitable, so to minimize the disappointment you will need to prioritize the outcomes you require from the sale. If price is the most important outcome, you may need to agree to seller financing or other concessions. If a fast sale is the highest priority, you may need to lower the asking price to quickly capture the attention of the marketplace.
Preparing Family Members
Since your business was a family affair, your family members should also be involved in its sale Unfortunately, families often experience turmoil during a sale even when the primary owner is convinced it's the right decision. As a seller, you need to be sensitive to your family's feelings about the sale and make an effort to keep them informed about the process. The decision to sell a kaleidoscopes business often begins with a family conversation and a mutual decision to move on the next stage of life.
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