Business Exit Planning
Selling a Marketing Programs and Services Business
Selling a marketing programs and services business doesn't happen overnight. It takes a deliberate process to get top dollar for your company.
Personal and professional concerns surround the sale of a marketing programs and services business. In addition to the personal enjoyment you received from the business, you probably have concerns about what will happen to the people who made your marketing programs and services business a success.
Too often marketing programs and services business owners fail to receive fair market value for their businesses. That's unfortunate because all it takes to get a fair price in today's market is ample planning and an awareness of what's important to buyers.
Sale Documents
In a marketing programs and services 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.
Business Valuation
Professional appraisers can use three methods to determine the value ofa marketing programs and services 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. Using recent marketing programs and services business sales as its foundation, the market method factors market conditions into the valuation process. A good appraiser will often use multiple valuation methods to arrive at a reasonable estimate. Sellers should take note of the fact that all three valuation methods reward businesses that takes steps to increase assets and income.
Realistic Expectations
Emotions run high during the sale of a marketing programs and services business. Sellers typically overvalue their companies compared to the rest of the marketplace. In our experience, the most successful sales are ones in which the seller has made an intentional effort to remain objective and set realistic expectations. A business broker can be a valuable resource in right-sizing your expectations and preparing you for market realities.
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