Niche Exit Planning Strategies

Selling a Delivery and Errand Service

Few entrepreneurs relish the idea of selling a business in a struggling economy. Yet delivery services continue to be sold at a brisk pace, outperforming the sales of many other types of businesses.

You survived all the ups and downs of owning a business. Next, you'll need to prepare yourself to address the rigors of selling a delivery service.

Many business owners don't know that delivery services are still a hot commodity, to the extent that sellers have properly prepared them for the marketplace.

Selecting a Broker

Good business brokers inevitably produce better business sales. In the delivery service industry, experience is a must-have characteristic for qualified brokerage. The best brokers should also come with a list of references, a demonstrable track record and a proven plan for selling delivery services.

Laying the Groundwork

Effective delivery service preparation focuses on communicating value to prospective buyers. In our experience, it pays to solicit the advice of a professional business broker as soon as possible. A good broker will guide you through the preparation stage and make sure you've covered all the bases. At a minimum, you'll want to position your business to receive the highest possible sale price, prepare a packet for prospective buyers and perform an initial appraisal before you put your delivery service on the market.

Valuation Methods

Professional appraisers can use three methods to determine the value ofa delivery service: The income method, the asset method and the market method. 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.

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