Business Exit Planning
Selling a Marketing Sales Business
You've heard the naysayers - now isn't the time to sell a marketing sales business. But what they don't know is that many entrepreneurs see marketing sales businesses as a smart business investment.
An assortment of hurdles and obstacles stand between you and the successful sale of your marketing sales business.
You'll always have an excuse for not putting your business on the market. Selling a marketing sales business isn't easy, but we believe sellers can achieve their goals in any economic environment.
Valuation Methods
The methods for valuing a marketing sales business vary according to your business model and circumstances. However, there are generally three valuation methods appraisers use to determine your company's worth. Appraisals based on the asset method gauge value as a factor of the company's real property and non-tangible assets; appraisals based on the income method consider the business's anticipated revenue. 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.
Benefits of Third-Party Assistance
Rarely, if ever, do owners sell a marketing sales business without outside assistance. The enlistment of a qualified business broker is an excellent first step. Additionally, you may want to hire professionals for legal, valuation and other functions before you put your business on the market. The early recruitment of external resources reduces your risk and results in a more predictable final outcome.
Laying the Groundwork
Effective marketing sales business preparation focuses on communicating value to prospective buyers. In our experience, it pays to solicit the advice of a professional business broker as soon as possible. A good broker will guide you through the preparation stage and make sure you've covered all the bases. Financial statements, appraisals, operations manuals and other documents lay the foundation for your marketing sales business sale, creating incentives for prospects to agree to a higher asking price.
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