Sell a Business Tips
Selling a Silos and Silo Equipment and Supplies Business
Business-for-sale markets are susceptible to a variety of influences. As you know, the silos and silo equipment and supplies business industry has seen more than its share of fluctuations in business values. Many sellers have exited their companies under less-than-ideal circumstances. Yet it's still possible to achieve personal and professional goals when selling a silos and silo equipment and supplies business whem market conditions threaten a successful business sale.
Most business sellers are interested in disposing of their businesses as quickly as possible. But that's not how a silos and silo equipment and supplies business sale works.
However, serious buyers also understand the value of a good silos and silo equipment and supplies business. So for silos and silo equipment and supplies business sellers, today's market is all about convincing buyers that the numbers make their companies worth the asking price.
Timing the Market
Now may be the best time to sell a silos and silo equipment and supplies business. Although the economy is generally struggling, low interest rates make silos and silo equipment and supplies businesses more attractive to entrepreneurs who want to get in the game. As the interest rates rise, it will be more difficult for buyers to make the numbers work in their favor. So we see market timing as a concern that can be easily mitigated by applying fundamental sales strategies and adequately preparing your company for buyers.
Post-Sale Details
As your silos and silo equipment and supplies businesssale nears completion, there is a lot of work remaining to be done. There are several details that still need to be addressed. What will the ownership transition look like? Are you prepared to deal with the tax consequences of receiving a significant sum of money in exchange for your business? How will you prepare your employees for your inevitable exit from the business? Ideally, these and other post-sale details should be addressed early on. But if you haven't dealt with them yet, it's important to have a frank conversation with the buyer, your broker and other professionals as soon as possible.
Valuation Methods
Professional appraisers can use three methods to determine the value ofa silos and silo equipment and supplies 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. 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.
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