Optimizing Business Exits
Selling a Rental Management Services Business
It's a misconception that no one is buying rental management services businesses these days. Savvy entrepreneurs see rental management services business opportunities as a path to short-term profits and long-term growth. There aren't any guarantees, but if you adhere to fundamental business sale concepts, you can likely get a good price for your business.
We're seeing a high volume of shadow inventory in the business-for-sale market.
Success is a factor of preparation, execution and a keen eye for the market. As a business seller, you need to go into the process with the mental goal of presenting your business in the best possible light.
Valuation Methods
Professional appraisers can use three methods to determine the value ofa rental management services 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. To drive up your sale price, position your rental management services business by improving variables like assets, revenue and profitability during the years leading up to a sale.
Promoting a rental management services business Sale
Successful rental management services business sales listings are intentionally promoted to the right prospects. But confidentiality issues are a hurdle you'll need to address before you put your rental management services business on the market. The knowledge that your business is being sold almost always converts into negative PR with your customers and vendors. The best way to advertise a rental management services business is to enlist the assistance of a business broker who is skilled in locating and contacting prospective buyers.
Adjusting Expectations
Every business seller dreams of a fast sale and a fat payday. However, no one told the marketplace about your expectations. The outcome of your sale will be determined by market forces - not by your personal circumstances or desires. Despite your best efforts, you need to prepare yourself for the possibility of receiving less than you expected from the sale of your rental management services business. If buyers don't seem to be willing to meet your expectations, consult with your broker to modify your strategy and market approach.
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