Advice on Niche Market Exit Planning
Selling a Towels Retail Business
Is the economy still a little shaky for a business sale? Sure it is. Yet towels retail businesses haven't heard the news and are reporting steady action on the business-for-sale market.
Economic data is scary stuff for small business owners. But quarterly data dumps don't impact towels retail business sales nearly as much as sale strategy.
Although it takes hard work and dedication, if it's time to exit your towels retail business there is a good chance you can sell it for a good price -- even in today's market.
Working with a Professional Accountant
Accountants lay the financial groundwork for a business sale. From a seller perspective, an accountant can offer personal financial assistance, especially when it comes to handling the disposition of sale proceeds. Brokers often advise their clients to have an accountant perform an audit of the business prior to sale. In many instances, your accountant will be invaluable in evaluating prospective buyers' financial position and buying capacity.
Business Valuation
Professional appraisers can use three methods to determine the value ofa towels retail 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. 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.
Preparing Your Towels Retail Business for Sale
The outcome of a business sale is largely determined prior to a market listing. Profitable towels retail business sales opportunities leverage a long-term strategy to increase the value of the business to buyers. Everything you do to increase market share and profitability has a payoff in the final sale price of your towels retail business. But your efforts to improve your company's position and profitability will only be effective if you invest similar effort into the preparation of accurate financial statements for buyers.
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