How to Sell a Niche Market Business
Selling an Engines Rebuilding, Service, and Repair Business
Your engines rebuilding, service, and repair business has been good to you. The next step is to position your business for the demands of the business-for-sale marketplace.
You're optimistic about the economy and so are we. Now the challenge is to convert business buyers who may have a more skeptical outlook.
Yet everyday, hundreds of listed engines rebuilding, service, and repair businesses manage to pique the interest of qualified buyers. They do it by paying attention to the details that other business sellers overlook.
Valuation Methods
Professional appraisers can use three methods to determine the value ofan engines rebuilding, service, and repair 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. Using recent engines rebuilding, service, and repair business sales as its foundation, the market method factors market conditions into the valuation process. 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.
Working with a Professional Accountant
Professional accountants lend credibility to the financial preparation of an engines rebuilding, service, and repair business sale. From a seller perspective, an accountant can offer personal financial assistance, especially when it comes to handling the disposition of sale proceeds. Brokers often advise their clients to have an accountant perform an audit of the business prior to sale. With seller financing becoming common, professional accountants are playing a more central role in negotiations and buyer qualification.
Pre-Sale Checklist
There is a lot of work that needs to be done before you're ready to sell your engines rebuilding, service, and repair business. Perhaps the most important pre-sale consideration is to right-size your expectations to the realities of the market. Once your expectations are in the ballpark, you can move on to making your business presentable to prospective buyers.
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