Niche Exit Planning Tactics
Selling a Wedding Ceremonies Business
The decision to sell your wedding ceremonies business isn't something that should be taken lightly, especially these days. If a business exit is on the horizon, you'll want to check out our suggestions for staying ahead of the market.
If you listen to many entrepreneurs, there never seems to be a good time to put a small business on the market.
Undaunted by economic conditions, many wedding ceremonies business sellers are achieving their sale goals through deliberate sale strategies.
Business Valuation
Professional appraisers can use three methods to determine the value ofa wedding ceremonies 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. 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.
Understanding Market Timing
Worried about timing? Believe it or not, this could be an advantageous time to put a wedding ceremonies business up for sale. A depressed economy means lower interest rates; lower interest rates increase the number of investors willing to take a chance on wedding ceremonies businesses. When the economy recovers there will be more wedding ceremonies business buyers on the market, but higher interest rates could present challenges. So we see market timing as a concern that can be easily mitigated by applying fundamental sales strategies and adequately preparing your company for buyers.
Sale Documents
We run into a lot of wedding ceremonies business sellers who intend to wait until the final contract to negotiate details. Big mistake. With few exceptions, sale structure is hammered out early, in the Letter of Intent . If you are seeking buyer concessions, the time to address them is before the Letter of Intent is drafted. For sellers, that makes a close review of the Letter of Intent more than a formality - it's a critical juncture on the path to closing.
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