Exit Planning Techniques By Market
Selling a Food Mixes Business
Selling a food mixes business doesn't happen overnight. It takes a deliberate process to get top dollar for your company.
Business-for-sale markets are less dependent on economic conditions than most sellers think they are.
Fortunately for sellers, forward-thinking entrepreneurs continue to be attracted to food mixes businesses that exhibit strong financials and potential for future growth.
Valuation Methods
Professional appraisers can use three methods to determine the value ofa food mixes 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. Using recent food mixes business sales as its foundation, the market method factors market conditions into the valuation process. 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. 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.
Preparing for What's Next
What will happen if your food mixes business is a success? many sellers find themselves ill-equipped to handle life after their business and fail to understand that their future plans can influence the sale process. We frequently encounter business sellers who haven't thought enough about their futures to know whether certain concessions (e.g seller financing) are a real possibility. As a result, they make bad decisions during the sale and experience less-than-optimal outcomes.
Advantages of Hiring a Broker
There are many reasons why hiring a broker makes sense in food mixes business sales. Right out of the gate, brokers know how to help their clients properly prepare their businesses for a sale. More importantly, brokers have the ability to identify serious buyers and maintain confidentiality throughout the sale process. Typical brokerage rates (a.k.a. success fees) run 10% of the final price - an expense that is usually recouped through a higher sales price and less time on the market.
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