It's a fact: Successful business sales take time.
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Qualified buyers are constantly looking for attractive luggage stores. Like always, unprofitable and poorly positioned businesses struggle to find buyers while sellers who have invested time and effort to prepare their sale are being rewarded in the marketplace.
Laying the Groundwork
Effective luggage store preparation focuses on communicating value to prospective buyers. Professional business brokers understand buyers and know how to properly communicate a luggage store to the marketplace. Specifically, brokers can advise you about the preparation of financial statements and other documents buyers expect to see in a premium luggage store opportunity.
Multiple valuation methods exist for a luggage store. 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. 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.
A good broker can offer several benefits to business sellers. 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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