Advice on Niche Market Exit Planning
Selling a Test Preparation and Tutoring Services Business
Many business leaders say that now isn't the time to try to sell a test preparation and tutoring services business. Don't be deterred by economic uncertainty. There are plenty of reasons why this is the right time to put your test preparation and tutoring services business on the market.
The economy isn't the only thing that is uncertain these days. So are test preparation and tutoring services business buyers, many of whom are waiting to pull the trigger on their next acquisition.
However, serious buyers also understand the value of a good test preparation and tutoring services business. To sell your test preparation and tutoring services business, you'll need to go the extra mile to prove your company has the potential to deliver steady revenue and a solid ROI.
What to Expect in a Test Preparation & Tutoring Services Business Sale
The sale of a test preparation and tutoring services business can be a rollercoaster of emotions. One minute you'll be elated at the possibility of moving on the next stage of your life and the next minute you'll be nostalgic about the memories of your time at the helm of your business. Given your personal investment, you may also experience disappointment in the market's assessment of your company's value. Although it isn't easy, you can mitigate the emotional impact of a test preparation and tutoring services business sale by setting realistic expectations before you list your business.
Valuation Methods
Multiple valuation methods exist for a test preparation and tutoring services business. 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. All three methods have multiple variations and it's not uncommon for appraisers to use a combination of the three to determine the value of your business. But regardless of the method that is used, it's always in the seller's best interest to increase revenue and asset values prior to a sale.
How to Increase Sale Price
There are no simple ways to sell a test preparation and tutoring services business. If you don't know what you're doing, your business could languish on the market for months or even years. Fortunately, a business broker can minimize the impact on your bank account and personal well-being. Solo sellers usually find that it's simply too much to sell their business and lead it at the same time. Subsequently, they settle for less than the business's potential sale price. For a lot reasons, a decision to hire a broker is almost always the right decision, especially for sellers who need to receive top dollar for their test preparation and tutoring services businesses.
Share this article
Additional Resources for Entrepreneurs