Niche Exit Planning Strategies

Selling a Drafting Engineers Business

Your drafting engineers business has been good to you. Before you walk away, you have one more challenge to overcome: A successful and profitable business sale.

Business buyers face their own set of frustrations and complications. Although there are plenty of entrepreneurs who want to buy a drafting engineers business, capital restrictions are holding them back.

Despite the overall mood of the marketplace, drafting engineers businesses are still an attractive investment, especially when sellers have invested time and energy in preparing their companies for a sale.

Timing the Market

Now may be the best time to sell a drafting engineers business. A depressed economy means lower interest rates; lower interest rates increase the number of investors willing to take a chance on drafting engineers businesses. As the interest rates rise, it will be more difficult for buyers to make the numbers work in their favor. At Gaebler, we recognize the value of timing the sale of your drafting engineers business. But we think it's more important to properly position your business for current market conditions -- whatever they may be.

Valuation Methods

Professional appraisers can use three methods to determine the value ofa drafting engineers 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. 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. But regardless of the method that is used, it's always in the seller's best interest to increase revenue and asset values prior to a sale.

Working with a Professional Accountant

Accountants lay the financial groundwork for a business sale. Most drafting engineers business have significant tax consequences requiring the input of a qualified accountant. A professional audit can ease buyer concerns and amp up the value of your financial presentation. With seller financing becoming common, professional accountants are playing a more central role in negotiations and buyer qualification.

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