Sell a Business for the Best Price
Selling a Pens and Pencils Retail Business
There are few things as intimidating as selling a business in a sluggish economy. Fortunately, a pens and pencils retail business sale isn't as scary as it seems.
Business buyers are a timid lot, even more so now that they are facing an uncertain economic landscape.
If your exit strategy involves selling a pens and pencils retail business now, sellers need to make a strong case for buyers to purchase at or near the asking price.
Valuation Methods
Professional appraisers can use three methods to determine the value ofa pens and pencils 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. 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.
Finding Prospects
Whether you know it or not, prospective buyers for your pens and pencils retail business are all around you. In fact, there is a good chance you already know several individuals or companies that might be interested in buying your business for a decent price. We frequently see qualified buyers emerge from the seller's network of business and personal acquaintances. In other cases, sellers take a proactive approach to finding likely buyers and contacting them directly. If you aren't generating interest in the general marketplace, consider approaching companies that sell complementary products or are closely situated in your supply chain.
How to Choose a Business Broker
Good business brokers inevitably produce better business sales. In the pens and pencils retail business industry, experience is a must-have characteristic for qualified brokerage. The chemistry you have with your broker is a consideration. If you don't connect with a specific broker, move on to someone else - even if the first broker looks great on paper.
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