Business Exit Planning
Selling a Medical Supplies Store
Business sellers have diverse personal and professional goals for the sale of their companies. But no matter what you expect from the sale of your medical supplies store, it's in your best interest to maximize the sales price through the application of proven sales techniques.
Market timing is a perennial problem for business sellers.
If you're ready to move on, now is the right time to sell your medical supplies store.
Average Preparation Time
There are no effective shortcuts for selling a medical supplies store. For starters, the financials need to demonstrate a track record of profitability and growth. Next, the business will need to be documented in professional financial statements and manuals that facilitate the ownership transition. Since all of this takes time and effort, a medical supplies store can rarely be ready for the marketplace in less than six months. However, to command the highest price, you'll probably need to spend one to two years preparing and positioning your business for buyers.
Leveraging Industry Connections
These days, medical supplies store buyers are an extremely diverse group with backgrounds in and outside of the industry. To advertise your sale to the widest possible audience, consider a listing on BizBuySell.com or other top online business-for-sale listing sites. But industry connections can also be a valuable source of leads. The downside of industry networks is that it leaves your company vulnerable to exploitation by competitors. Use good sense in restricting the flow of information within the industry and focusing your efforts toward trusted industry allies.
Business Valuation
Professional appraisers can use three methods to determine the value ofa medical supplies store: 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 medical supplies store by improving variables like assets, revenue and profitability during the years leading up to a sale.
Share this article
Additional Resources for Entrepreneurs