Exit Planning Techniques By Market
Selling a Fire Alarms and Monitoring Services Business
Many business leaders say that now isn't the time to try to sell a fire alarms and monitoring services business. At Gaebler, we think it's a great time to sell a fire alarms and monitoring services business. Here's why . . ..
Business buyers are a timid lot, even more so now that they are facing an uncertain economic landscape.
Does that mean selling your fire alarms and monitoring services business will be a piece of cake? No -- but you might be surprised to learn that the fire alarms and monitoring services businesses that are selling these days are finding success though simple, common sense selling strategies.
Adjusting Expectations
Every business seller dreams of a fast sale and a fat payday. However, no one told the marketplace about your expectations. The outcome of your sale will be determined by market forces - not by your personal circumstances or desires. Despite your best efforts, you need to prepare yourself for the possibility of receiving less than you expected from the sale of your fire alarms and monitoring services business. If buyers don't seem to be willing to meet your expectations, consult with your broker to modify your strategy and market approach.
Valuation Methods
The methods for valuing a fire alarms and monitoring services business vary according to your business model and circumstances. However, there are generally three valuation methods appraisers use to determine your company's worth. 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. Finally, the market method determines the worth of your fire alarms and monitoring services 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.
Pre-Sale Checklist
There is a lot of work that needs to be done before you're ready to sell your fire alarms and monitoring services business. Perhaps the most important pre-sale consideration is to right-size your expectations to the realities of the market. Armed with a realistic timeframe and asking price, you can begin to consult with your broker about the best way to approach likely buyers.
Share this article
Additional Resources for Entrepreneurs