Sell a Business Tips
Selling a Surface Plates Business
You've learned a lot during your tenure as a surface plates business owner. Now the trick is to convince cautious buyers that your operation is worth the asking price.
In a down economy, many surface plates business sellers wait to list their businesses until they see signs that the economy has rebounded, making it difficult to accurately evaluate the number of surface plates businesses that are actually for sale.
Although it takes hard work and dedication, if it's time to exit your surface plates business there is a good chance you can sell it for a good price -- even in today's market.
Average Preparation Time
Preparing a surface plates business sale takes time. 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 surface plates business operation. Since all of this takes time and effort, a surface plates business can rarely be ready for the marketplace in less than six months. However, to command the highest price, you'll probably need to spend one to two years preparing and positioning your business for buyers.
Valuation Methods
Professional appraisers can use three methods to determine the value ofa surface plates 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. As a safeguard, consider conducting appraisals using variations of multiple appraisal methods. Sellers should take note of the fact that all three valuation methods reward businesses that takes steps to increase assets and income.
Leveraging External Resources
Rarely, if ever, do owners sell a surface plates business without outside assistance. Brokers can be an important resource for your sale, especially if you are unfamiliar with the business-for-sale marketplace. Additionally, you may want to hire professionals for legal, valuation and other functions before you put your business on the market. The early recruitment of external resources reduces your risk and results in a more predictable final outcome.
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