Sell a Business Tips
Selling a Structural Integration Business
Few entrepreneurs relish the idea of selling a business in a struggling economy. Yet structural integration businesses continue to be sold at a brisk pace, outperforming the sales of many other types of businesses.
An assortment of hurdles and obstacles stand between you and the successful sale of your structural integration business.
Most structural integration businesses are good business opportunities, a fact that is not going unnoticed by today's discerning buyers.
Valuation Methods
The methods for valuing a structural integration business vary according to your business model and circumstances. However, there are generally three valuation methods appraisers use to determine your company's worth. 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. Sellers should take note of the fact that all three valuation methods reward businesses that takes steps to increase assets and income.
Timing the Market
Now may be the best time to sell a structural integration business. With interest rates at all-time lows, it's easy to see why structural integration businesses are an appealing investment opportunity for savvy investors. 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.
Legal Considerations
There is no way around the requirement to hire professional legal assistance when you sell your structural integration business. Competent legal counsel ensures that the sale documents are in proper order. Furthermore, a good lawyers provides the counsel necessary to navigate the tax and liability issues that surround a business sale. We recommend hiring an attorney early in the process to gain insights about the legal consequences of various sale outcomes.
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