Exit Planning Techniques By Market

Selling a Flagstone and Slate Business

Is the economy still a little shaky for a business sale? Sure it is. Yet flagstone and slate businesses continue to sell at a brisk pace, regardless of the economy.

Selling a flagstone and slate business? You'll need to be prepared to address a variety of challenges that are common in the business-for-sale marketplace.

The business-for-sale market is extremely dynamic. Knowledgeable entrepreneurs understand that market timing isn't nearly as important as other factors in a flagstone and slate business sale. To improve sale outcomes, you will simply need to tailor your flagstone and slate business to today's buyers.

Finding Prospects

Many sellers don't realize how many prospective buyers there are for their businesses. Although some flagstone and slate business sellers advertise their businesses in general classifieds, the most successful sales are those in which professional brokers seek out likely buyers. If you aren't generating interest in the general marketplace, consider approaching companies that sell complementary products or are closely situated in your supply chain.

Sale Documents

A basic understanding of legal requirements is foundational for a successful business sale. Despite the confusion that exists among many sellers, the essentials of the sale are described in the Letter of Intent, a seminal document that is created prior to due diligence . If you are seeking buyer concessions, the time to address them is before the Letter of Intent is drafted. For sellers, that makes a close review of the Letter of Intent more than a formality - it's a critical juncture on the path to closing.

Valuation Methods

Professional appraisers can use three methods to determine the value ofa flagstone and slate 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). 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.

Share this article


Additional Resources for Entrepreneurs

Lists of Venture Capital and Private Equity Firms

Franchise Opportunities

Contributors

Business Glossary