Sell a Business Tips
Selling a Satellite Receivers Business
The business-for-sale marketplace has experienced no shortage of uncertainty over the past several years. But satellite receivers businesses haven't heard the news and are reporting steady action on the business-for-sale market.
Business-for-sale markets are less dependent on economic conditions than most sellers think they are.
Armed with a deliberate selling strategy, sellers of satellite receivers businesses are finding qualified buyers, even in today's tough market.
Sale Preparation Timeframes
Preparing a satellite receivers business sale takes time. Buyers want to see growth trends, healthy profits and other variables that increase the likelihood of long-term success. Next, the business will need to be documented in professional financial statements and manuals that facilitate the ownership transition. At a minimum, plan on spending six months preparing your satellite receivers business for the marketplace. If you can afford to wait, we recommend investing a few years in improving your business's financial position before you put it on the market.
Adjusting Expectations
If you're smart, you entered your satellite receivers business with a set of assumptions about what it would achieve. However, no one told the marketplace about your expectations. The outcome of your sale will be determined by market forces - not by your personal circumstances or desires. Despite your best efforts, you need to prepare yourself for the possibility of receiving less than you expected from the sale of your satellite receivers business. If price is the most important outcome, you may need to agree to seller financing or other concessions. If a fast sale is the highest priority, you may need to lower the asking price to quickly capture the attention of the marketplace.
Business Valuation
Professional appraisers can use three methods to determine the value ofa satellite receivers business: The income method, the asset method and the market method. Appraisals based on the asset method gauge value as a factor of the company's real property and non-tangible assets; appraisals based on the income method consider the business's anticipated revenue. Using recent satellite receivers business sales as its foundation, the market method factors market conditions into the valuation process. 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. To drive up your sale price, position your satellite receivers business by improving variables like assets, revenue and profitability during the years leading up to a sale.
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