Advice on Niche Market Exit Planning
Selling a Technical School
Most businesses are susceptible to economic conditions and technical schools are no exception. But in some cases, a down economy can actually improve saleability. All it takes is a strategy to identify solid prospects and convert them to buyers.
Business sellers are notorious for second-guessing themselves about the right time to put their companies up for sale.
Despite the overall mood of the marketplace, technical schools are still an attractive investment, especially when sellers have invested time and energy in preparing their companies for a sale.
Emotional Considerations
It's impossible to predict the emotional highs and lows you will experience during the sale of your technical school. Given your personal investment, you may also experience disappointment in the market's assessment of your company's value. Accurate expectations, a solid strategy and a strong support system can be valuable resources for coping with the personal impact of the sale.
Tips for Working with A Business Broker
Business brokers are professional business sellers. It's typical for technical school to rely on brokers to reduce market time and increase the final sales price. However, your broker will still expect you to materially participate in the sale of your business. Successfully brokered sales are based on solid relationships between brokers and sellers as well as the strict execution of a common selling strategy.
Business Valuation
Professional appraisers can use three methods to determine the value ofa technical school: The income method, the asset method and the market method. 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). Using recent technical school sales as its foundation, the market method factors market conditions into the valuation process. 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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