Sell a Business Tips
Selling a Solvents Business
Business-for-sale markets are susceptible to a variety of influences. As you know, the solvents business industry has seen more than its share of fluctuations in business values. Sellers have adapted their strategies to accommodate changing market realities, incorporating a handful of proven techniques for selling a solvents business during challenging economic times.
According to the experts, there is currently a large volume of shadow inventory in the solvents business market -- businesses that are waiting to be listed until the economy recovers.
Too often solvents business owners sell for a price that is well below market value. With the right strategy, your sale doesn't have to end that way.
Preparing Your Solvents Business for Sale
The outcome of a business sale is largely determined prior to a market listing. Profitable solvents business listings are the culmination of a preparation process that began months or even years ahead of time. Even though it may take years to adequately position your solvents business, the amount of preparation you perform will have direct correlation on asking and sale prices. But your efforts to improve your company's position and profitability will only be effective if you invest similar effort into the preparation of accurate financial statements for buyers.
Selecting a Broker
Good business brokers inevitably produce better business sales. In the solvents 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.
Business Valuation
Multiple valuation methods exist for a solvents business. The income method determines value based on the amount of income the business is expected to generate. The asset method, on the other hand, is based on the value of tangible and non-tangible assets (e.g. brands and trademarks). 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. 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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