Selling a Business Advice
Selling an Industrial Equipment and Supplies Dealers Business
Business-for-sale markets are susceptible to a variety of influences. As you know, the industrial equipment and supplies dealers business industry has seen more than its share of fluctuations in business values. Here's what you'll need to know to sell an industrial equipment and supplies dealers business in the current economic environment.
It's a fact: Successful business sales take time.
If your exit strategy involves selling an industrial equipment and supplies dealers business now, sellers need to make a strong case for buyers to purchase at or near the asking price.
Brokerage Benefits
A good broker can offer several benefits to business sellers. Right out of the gate, brokers know how to help their clients properly prepare their businesses for a sale. More importantly, brokers have the ability to identify serious buyers and maintain confidentiality throughout the sale process. Typical brokerage rates (a.k.a. success fees) run 10% of the final price - an expense that is usually recouped through a higher sales price and less time on the market.
Laying the Groundwork
A successful industrial equipment and supplies dealers business sale begins with careful planning. Although you are convinced your business has value in the marketplace, the planning process establishes a framework for communicating its value to prospective buyers. Professional business brokers understand buyers and know how to properly communicate an industrial equipment and supplies dealers business to the marketplace. Financial statements, appraisals, operations manuals and other documents lay the foundation for your industrial equipment and supplies dealers business sale, creating incentives for prospects to agree to a higher asking price.
Business Valuation
The methods for valuing an industrial equipment and supplies dealers 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. Using recent industrial equipment and supplies dealers business sales as its foundation, the market method factors market conditions into the valuation process. As a safeguard, consider conducting appraisals using variations of multiple appraisal methods. To drive up your sale price, position your industrial equipment and supplies dealers business by improving variables like assets, revenue and profitability during the years leading up to a sale.
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