Exit Planning Techniques By Market
Selling a Factory Outlet Store
There is a lot of confusion about the best way to sell a factory outlet store in today's economy. 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.
The factory outlet store-for-sale marketplace is a nuanced environment, full of pitfalls for sellers who aren't prepared for its demands.
Although we understand why sellers are hesitant, we're also seeing enough business sales to know that if you want to sell a factory outlet store, you can - even in today's economy. With the right information and strategy, you could be well on your way to a successful sale
Pre-Sale Checklist
The upfront time you investment in the sale of your factory outlet store will pay big dividends at closing. Perhaps the most important pre-sale consideration is to right-size your expectations to the realities of the market. Once your expectations are in the ballpark, you can move on to making your business presentable to prospective buyers.
Maximizing Sales Price
A successful factory outlet store requires an investment of both time and money. Many sellers find that hiring a business broker makes the demands of a sale much more tolerable. Seller fatigue is a real concern - if your business sits on the market too long, you will be tempted to sell below your expectations. For a lot reasons, a decision to hire a broker is almost always the right decision, especially for sellers who need to receive top dollar for their factory outlet stores.
Business Valuation
Professional appraisers can use three methods to determine the value ofa factory outlet store: 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. 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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