Sell a Business Tips
Selling a Stationery Store
We hear it all the time: 'This economy is a hostile environment for a business sale.' However, stationery stores haven't been deterred. In fact, we think this economy is a ripe environment for a stationery store sale.
You need to get a good price for your stationery store. To get there, you'll need to set realistic expectations and follow a deliberate selling strategy.
If you're ready to move on, now is the right time to sell your stationery store.
Average Preparation Time
It's critical to properly plan for the sale ofa stationery store. Since buyers prefer to see evidence of future cash flow, you'll want to to strategically lock in cash flows and increase profits before you list the business. You'll also need to create financial reports, operations manuals, and other documents to create the perception of a turnkey stationery store operation. At a minimum, plan on spending six months preparing your stationery store for the marketplace. A more likely scenario is that it will take more than a year to create the conditions necessary to receive the maximum sale price.
Valuation Methods
The methods for valuing a stationery store vary according to your business model and circumstances. However, there are generally three valuation methods appraisers use to determine your company's worth. 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. To drive up your sale price, position your stationery store by improving variables like assets, revenue and profitability during the years leading up to a sale.
How to Choose a Business Broker
Good business brokers inevitably produce better business sales. In the stationery store industry, experience is a must-have characteristic for qualified brokerage. The best brokers should also come with a list of references, a demonstrable track record and a proven plan for selling stationery stores.
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