Niche Exit Planning Strategies

Selling a Direct Mail Advertising Services Business

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

In any economy, there is a right way and a wrong way to sell a business.

If you're looking for a reason to wait to put your business on the market, you'll find it. Any direct mail advertising services business can be sold at any time -- you just need to know how to influence the right buyers.

Valuation Methods

Professional appraisers can use three methods to determine the value ofa direct mail advertising services 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 direct mail advertising services 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.

Average Preparation Time

It's critical to properly plan for the sale ofa direct mail advertising services business. Since buyers prefer to see evidence of future cash flow, you'll want to to strategically lock in cash flows and increase profits before you list the business. Additionally, prospective buyers usually request documentation that allows them to understand the business's daily workflows and operational strategy. Since all of this takes time and effort, a direct mail advertising services business can rarely be ready for the marketplace in less than six months. However, to command the highest price, you'll probably need to spend one to two years preparing and positioning your business for buyers.

Post-Sale Details

As your direct mail advertising services businesssale nears completion, there is a lot of work remaining to be done. The transition to the new owner, the distribution of sale proceeds and other issues can weigh heavily on sellers. If there are pending details that still need to ironed out, address them ASAP to ensure a smooth closing and transition.

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