Niche Exit Planning Tactics
Selling a Web Conferencing Business
No one said selling your business in a depressed economy would be easy. Fortunately, a web conferencing business sale isn't as scary as it seems.
Cutting corners never pays off, especially in the sale of a web conferencing business.
But the good news is that there is still demand for web conferencing businesses that present well and offer solid earning potential.
Average Timeframes
Hoping for a quick web conferencing business sale? You may be disappointed. Although asking price and other factors contribute to sale time, it's difficult to predict how long your business will be on the market before you locate the right buyer. Before you can list your web conferencing business, you'll need to invest as much as a year in preparing it for prospective buyers. Once your business is ready for the marketplace, it could take an additional six months to a year to locate the right buyer.
Valuation Methods
The methods for valuing a web conferencing business vary according to your business model and circumstances. However, there are generally three valuation methods appraisers use to determine your company's worth. 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.
Signs You're in Over Your Head
Many web conferencing business are tempted to save brokerage fees by selling their businesses on their own. Although there are exceptions, solo sales typically take longer and are less productive than brokered sales. Generally, listed businesses should generate interest within a few months. Lack of buyer enthusiasm or persistence indicates that something is wrong. If that occurs, it's time to bring in the professionals to get your sale back on track.
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