Optimizing Business Exits
Selling a Records Management Business
Many business leaders say that now isn't the time to try to sell a records management business. But in reality, now may be the perfect time to sell a records management business.
You survived all the ups and downs of owning a business. Next, you'll need to prepare yourself to address the rigors of selling a records management business.
Despite the conventional wisdom, we believe current economic conditions are right for selling a records management business. With the right information and strategy, you could be well on your way to a successful sale
Business Valuation
Professional appraisers can use three methods to determine the value ofa records management 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 records management 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.
Promoting a records management business Sale
Successful records management business sales incorporate comprehensive advertising plans. But confidentiality issues are a hurdle you'll need to address before you put your records management business on the market. The knowledge that your business is being sold almost always converts into negative PR with your customers and vendors. The best way to advertise a records management business is to enlist the assistance of a business broker who is skilled in locating and contacting prospective buyers.
Leveraging Industry Connections
These days, records management business 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. For more targeted lead generation, consider tapping into your network of industry contacts. When leveraging industry relationships for sales prospects, you'll need to be cognizant of the potential for competitors to use knowledge of your sale against you in the marketplace. Use good sense in restricting the flow of information within the industry and focusing your efforts toward trusted industry allies.
Share this article
Additional Resources for Entrepreneurs