Business Exit Planning
Selling a Major Appliance Refinishing Business
The business-for-sale marketplace has experienced no shortage of uncertainty over the past several years. But major appliance refinishing businesses haven't heard the news and are reporting steady action on the business-for-sale market.
The major appliance refinishing business-for-sale marketplace is a nuanced environment, full of pitfalls for sellers who aren't prepared for its demands.
Growth-minded entrepreneurs also find an appealing major appliance refinishing business hard to pass up. So for major appliance refinishing business sellers, today's market is all about convincing buyers that the numbers make their companies worth the asking price.
Factoring In Economic Variables
Several economic factors can affect the sale of a major appliance refinishing business. Interest rates, spending, inflation, and other variables directly influence how long your major appliance refinishing business will be on the market as well as its sales price. If you base the decision to sell your major appliance refinishing business solely on the market, you may be in for a long wait. A much better approach is to focus on the factors that always attract buyers and investors. In our experience, the most important factors in the sale of a major appliance refinishing business have little to do with the economy.
When the Sale Goes Off-Course
Many major appliance refinishing business 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 major appliance refinishing business is priced out of the market. The remedy is professional brokerage or a consultation with more experienced sellers.
Business Valuation
Professional appraisers can use three methods to determine the value ofa major appliance refinishing 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. Finally, the market method determines the worth of your major appliance refinishing business based on the sales of similar businesses in your geographic area. As a safeguard, consider conducting appraisals using variations of multiple appraisal methods. Sellers should take note of the fact that all three valuation methods reward businesses that takes steps to increase assets and income.
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