Business Exits By Industry
Selling a Consumer Protection Services Business
A lot can go wrong during the sale of a consumer protection services business these days. More than ever before, it's important for sellers to know the tactics and techniques that are being used to maximize sales price and achieve desired sale outcomes.
We hear it all the time: "I'm waiting until the economy recovers to list my business."
Many business owners don't know that consumer protection services businesses are still a hot commodity, to the extent that sellers have properly prepared them for the marketplace.
Preparing Family Members
Since your business was a family affair, your family members should also be involved in its sale In many cases, we find that even though business owners are equipped to handle their ownership exit, their family members are having a hard time letting go of the business, especially if family life has revolved around the demands of the consumer protection services business. The sale of the business will likely result in new family dynamics. Subsequently, selling a consumer protection services business has to include ample communication and shared decision-making.
Broker vs. No Broker
Anyone who has ever sold a consumer protection services business has eventually needed to decide whether to use a business broker or go it alone. Although brokerage fees can be substantial, the right broker can reduce the amount of time your consumer protection services business sits on the market. You can also expect to receive a higher sales price for your business in a broker-assisted deal.
Valuation Methods
Multiple valuation methods exist for a consumer protection services business. 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. 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.
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