Niche Exit Planning Tactics
Selling a Wedding Information and Referral Services Business
It's a misconception that no one is buying wedding information and referral services businesses these days. Savvy entrepreneurs see wedding information and referral services business opportunities as a path to short-term profits and long-term growth. Here's what you need to know to get a fair price for your company.
With planning and patience, most wedding information and referral services businesses can be sold for a fair price in the current business-for-sale marketplace.
The economy hasn't squashed the market for wedding information and referral services businesses. Like always, unprofitable and poorly positioned businesses struggle to find buyers while sellers who have invested time and effort to prepare their sale are being rewarded in the marketplace.
Average Preparation Time
There are no effective shortcuts for selling a wedding information and referral services business. Since buyers prefer to see evidence of future cash flow, you'll want to to strategically lock in cash flows and increase profits before you list the business. Next, the business will need to be documented in professional financial statements and manuals that facilitate the ownership transition. Unless you have already started planning for your wedding information and referral services business sale, it's going to take at least six months to prepare your business. However, to command the highest price, you'll probably need to spend one to two years preparing and positioning your business for buyers.
Leveraging Industry Connections
Today's wedding information and referral services business buyers can be found in a variety of locations. Online business-for-sale databases have value, although they appeal to an exceptionally wide base of prospects. For more targeted lead generation, consider tapping into your network of industry contacts. Time and time again, successful wedding information and referral services business sales emerge from relationships within the industry. The challenge is to leverage industry connections while keeping knowledge of the sale hidden from your competitors. Your broker may be able to offer strategies for promoting your sale within your network while maintaining some remnant of a confidential sale.
Valuation Methods
The methods for valuing a wedding information and referral services business vary according to your business model and circumstances. However, there are generally three valuation methods appraisers use to determine your company's worth. 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. All three methods have multiple variations and it's not uncommon for appraisers to use a combination of the three to determine the value of your business. Sellers should take note of the fact that all three valuation methods reward businesses that takes steps to increase assets and income.
Share this article
Additional Resources for Entrepreneurs