Business Exit Planning
Selling a Men's Clothing Retail Business
Despite the pessimistic mood of many sellers, your men's clothing retail business can be a high value acquisition target for ambitious entrepreneurs -- even in today's tough economy.
Personal and professional concerns surround the sale of a men's clothing retail business. In our experience, a common owner concern is how the sale will affect customers and employees.
The economy hasn't squashed the market for men's clothing retail businesses. Like always, unprofitable and poorly positioned businesses struggle to find buyers while sellers who have invested time and effort to prepare their sale are being rewarded in the marketplace.
Economic Considerations
Think a men's clothing retail business sale is simple? Think again. Interest rates, spending, inflation, and other variables directly influence how long your men's clothing retail business will be on the market as well as its sales price. The truth is that perfect market conditions may never materialize. If you don't believe your men's clothing retail business would sell for top dollar right now, what can you do to make it more attractive to the marketplace? Increase profitability? Build brand visibility?. When it comes to selling a men's clothing retail business, successful sales sales often boil down to the business itself - not the economy.
Valuation Methods
Professional appraisers can use three methods to determine the value ofa men's clothing retail 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 men's clothing retail 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. But regardless of the method that is used, it's always in the seller's best interest to increase revenue and asset values prior to a sale.
Sale Costs
In a men's clothing retail business sale, pricing is based on a number of factors, including the costs incurred during the sale. Good brokerage takes a 10% success fee off the top of the final sale price. Professional consultations can also represent a significant expense during the course of a men's clothing retail business sale. Likewise, you'll need to consider how much it will cost to promote the sale as well as the lost time it will take for you and your team to navigate the sale process.
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