Exit Planning Techniques By Market
Selling a Fasteners Business
Although a fasteners business may not be completely recession-proof, the best companies can survive nearly any storm. All it takes is a strategy to identify solid prospects and convert them to buyers.
Business sellers are notorious for second-guessing themselves about the right time to put their companies up for sale.
Undaunted by economic conditions, many fasteners business sellers are achieving their sale goals through deliberate sale strategies.
Realistic Expectations
Objectivity is a rare commodity in a business sale. You have invested yourself in making your fasteners business the success it is today, but in the eyes of prospective buyers, your operation is only worth fair market value. In our experience, the most successful sales are ones in which the seller has made an intentional effort to remain objective and set realistic expectations. A business broker can be a valuable resource in right-sizing your expectations and preparing you for market realities.
Business Valuation
Professional appraisers can use three methods to determine the value ofa fasteners business: The income method, the asset method and the market method. The income method determines value based on the amount of income the business is expected to generate. The asset method, on the other hand, is based on the value of tangible and non-tangible assets (e.g. brands and trademarks). Finally, the market method determines the worth of your fasteners business based on the sales of similar businesses in your geographic area. 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.
Benefits of Third-Party Assistance
At some point, you're going to need help selling your fasteners business. Brokers can be an important resource for your sale, especially if you are unfamiliar with the business-for-sale marketplace. We also suggest hiring an attorney, an appraiser, and an accountant early in the process. The early recruitment of external resources reduces your risk and results in a more predictable final outcome.
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