Advice on Niche Market Exit Planning
Selling a Two-Way Radio Sales and Service Business
We hear it all the time: 'This economy is a hostile environment for a business sale.' However, two-way radio sales and service businesses haven't heard the news and are reporting steady action on the business-for-sale market.
These days, the prospect of selling a two-way radio sales and service business is so daunting that many would-be sellers are biding their time, waiting for a break in the economic clouds.
Too often two-way radio sales and service business sellers fail to receive fair market value for their businesses. With the right strategy, your sale doesn't have to end that way.
Handling Unexpected Outcomes
Every business seller dreams of a fast sale and a fat payday. Ultimately, many sellers find that the market is unable to deliver their anticipated outcomes. Surprises are inevitable, so to minimize the disappointment you will need to prioritize the outcomes you require from the sale. If buyers don't seem to be willing to meet your expectations, consult with your broker to modify your strategy and market approach.
Laying the Groundwork
Effective two-way radio sales and service business preparation focuses on communicating value to prospective buyers. Professional business brokers understand buyers and know how to properly communicate a two-way radio sales and service business to the marketplace. At a minimum, you'll want to position your business to receive the highest possible sale price, prepare a packet for prospective buyers and perform an initial appraisal before you put your two-way radio sales and service business on the market.
Valuation Methods
Professional appraisers can use three methods to determine the value ofa two-way radio sales and service business: The income method, the asset method and the market method. Appraisals based on the asset method gauge value as a factor of the company's real property and non-tangible assets; appraisals based on the income method consider the business's anticipated revenue. Finally, the market method determines the worth of your two-way radio sales and service business based on the sales of similar businesses in your geographic area. 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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