Niche Exit Planning Tactics
Selling a Water Sports Business
Few entrepreneurs relish the idea of selling a business in a struggling economy. Yet water sports businesses continue to be sold at a brisk pace, outperforming the sales of many other types of businesses.
Selling a water sports business? You'll need to be prepared to address a variety of challenges that are common in the business-for-sale marketplace.
However, serious buyers also understand the value of a good water sports business. So for water sports business sellers, today's market is all about convincing buyers that the numbers make their companies worth the asking price.
Preparing Your Water Sports Business for Sale
The outcome of a business sale is largely determined prior to a market listing. Profitable water sports business sales opportunities leverage a long-term strategy to increase the value of the business to buyers. Even though it may take years to adequately position your water sports business, the amount of preparation you perform will have direct correlation on asking and sale prices. 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.
Valuation Methods
Professional appraisers can use three methods to determine the value ofa water sports 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. 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.
Handling Unexpected Outcomes
Every business seller dreams of a fast sale and a fat payday. However, no one told the marketplace about your expectations. The outcome of your sale will be determined by market forces - not by your personal circumstances or desires. Sometimes, sellers need to readjust their expectations to accommodate market realties. If price is the most important outcome, you may need to agree to seller financing or other concessions. If a fast sale is the highest priority, you may need to lower the asking price to quickly capture the attention of the marketplace.
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