You need to get a good price for your popcorn equipment and supplies business. To get there, you'll need to set realistic expectations and follow a deliberate selling strategy.
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Many business owners don't know that popcorn equipment and supplies businesses are still a hot commodity, to the extent that sellers have properly prepared them for the marketplace.
Professional appraisers can use three methods to determine the value ofa popcorn equipment and supplies 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. Sellers should take note of the fact that all three valuation methods reward businesses that takes steps to increase assets and income.
Working with Appraisers
Next to your broker, a skilled appraiser is the person most capable of adding value to the price of your popcorn equipment and supplies business. Armed with a professional appraisal, both you and your broker can enter the negotiation stage with confidence. If you're disappointed with the appraiser's estimate of your company's worth, you have the option of seeking a second opinion. However, it's more often the case that you will need to adjust your expectations of your business's value to buyers.
Many sellers embarked on their popcorn equipment and supplies business sale without adequately considering the impact it will have on their families. Unfortunately, families often experience turmoil during a sale even when the primary owner is convinced it's the right decision. The sale of the business will likely result in new family dynamics. Subsequently, selling a popcorn equipment and supplies business has to include ample communication and shared decision-making.
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