Business Exit Planning
Selling a Mugs Business
Don't believe anyone who tells you it's easy to sell a mugs business. A lot of things need to happen before you can successfully exit your business. But with a few tips, you can keep your shirt and your sanity in the sale of your business.
With planning and patience, most mugs businesses can be sold for a fair price in the current business-for-sale marketplace.
In today's market, there is still plenty of room for mugs businesses that demonstrate solid earning capacity and a robust market position.
Sale Costs
The calculation of your asking price should include a buffer to cover the expense of the sale process. Good brokerage takes a 10% success fee off the top of the final sale price. Depending on your circumstances, you may also incur substantial expenses in hiring legal, appraisal and accounting professionals. If you need to compensate employees to assist with the sale, their services should also be considered.
Factoring In Economic Variables
Several economic factors can affect the sale of a mugs business. Many would-be sellers are laser-focused on economic indicators, anxiously awaiting the perfect time to list their companies. The truth is that perfect market conditions may never materialize. A much better approach is to focus on the factors that always attract buyers and investors. One thing is for sure - buyers are paying more attention to your company's profitability and growth potential than they are to the latest quarterly economic indicators.
Valuation Methods
Multiple valuation methods exist for a mugs business. 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. 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.
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