Business Exit Planning
Selling a Military Recruiting Business
Most businesses are susceptible to economic conditions and military recruiting businesses are no exception. But in some cases, a down economy can actually improve saleability. All it takes is a strategy to identify solid prospects and convert them to buyers.
Cutting corners never pays off, especially in the sale of a military recruiting business.
Success is a factor of preparation, execution and a keen eye for the market. Since your future goals depend on the outcome of your sale, you'll need to have your head in the game from Day One.
Broker vs. No Broker
Anyone who has ever sold a military recruiting business has eventually needed to decide whether to use a business broker or go it alone. Is there a cost associated with hiring a broker? Sure - about 10% of the final sale prices. But a good broker will make selling your military recruiting business much less painful. You can also expect to receive a higher sales price for your business in a broker-assisted deal.
Average Timeframes
From the day they decide to sell their company, the question that plagues many owners is how long it will take to sell their military recruiting business. Although asking price and other factors contribute to sale time, it's difficult to predict how long your business will be on the market before you locate the right buyer. Before you can list your military recruiting business, you'll need to invest as much as a year in preparing it for prospective buyers. In a good market, an attractive military recruiting business can sell in as little as a few months, although it can take more than a year to find the right buyer after the business is listed.
Valuation Methods
Multiple valuation methods exist for a military recruiting business. 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 military recruiting 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. To drive up your sale price, position your military recruiting business by improving variables like assets, revenue and profitability during the years leading up to a sale.
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