Niche Market Exit Planning Tips
Selling a Birthday Party Business
Don't believe anyone who tells you it's easy to sell a birthday party business. A lot of things need to happen before you can successfully exit your business. But with a few tips, you can keep your shirt and your sanity in the sale of your business.
It's a fact: Successful business sales take time.
However, serious buyers also understand the value of a good birthday party business. Financial statements and ROI are essential in converting modern birthday party business prospects into buyers.
Broker vs. No Broker
When selling a birthday party business, you have two choices: Hire a broker to facilitate the sale or perform the sale unassisted. Business brokers typically charge a 10% "success fee" when they sell a business, but they also handle many of the hassles that are associated with selling a birthday party business. You can also expect to receive a higher sales price for your business in a broker-assisted deal.
Laying the Groundwork
A successful birthday party 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 a birthday party business to the marketplace. Specifically, brokers can advise you about the preparation of financial statements and other documents buyers expect to see in a premium birthday party business opportunity.
Equipment and Inventory Concerns
Buyers typically perform an independent appraisal of your birthday party business's physical assets. Your appraisal should occur before you put your business on the market. Without an accurate assessment of asset values it's impossible to intelligently negotiate on price. A pre-listing appraisal also gives you the opportunity to document the condition of your birthday party business's assets and possible even make repairs or upgrades to increase the total value of the operation.
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