Niche Exit Planning Tactics
Selling a Wardrobes Business
Is the economy still a little shaky for a business sale? Sure it is. Yet wardrobes businesses continue to sell at a brisk pace, regardless of the economy.
You need to get a good price for your wardrobes business. To get there, you'll need to set realistic expectations and follow a deliberate selling strategy.
Although it takes hard work and dedication, if it's time to exit your wardrobes business there is a good chance you can sell it for a good price -- even in today's market.
Laying the Groundwork
Effective wardrobes business preparation focuses on communicating value to prospective buyers. In our experience, it pays to solicit the advice of a professional business broker as soon as possible. A good broker will guide you through the preparation stage and make sure you've covered all the bases. Specifically, brokers can advise you about the preparation of financial statements and other documents buyers expect to see in a premium wardrobes business opportunity.
Sale Costs
In a wardrobes business sale, pricing is based on a number of factors, including the costs incurred during the sale. Hiring a broker is a mixed bag because although brokers can increase the sale price, they also take a 10% fee. Professional consultations can also represent a significant expense during the course of a wardrobes business sale. Furthermore, your time has value, so you may need to include a personal compensation consideration in your expense estimates.
Valuation Methods
Professional appraisers can use three methods to determine the value ofa wardrobes business: 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). 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.
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