Optimizing Business Exits
Selling a Resorts and Vacation Cottages Business
Many business leaders say that now isn't the time to try to sell a resorts and vacation cottages business. At Gaebler, we think it's a great time to sell a resorts and vacation cottages business. Here's why . . ..
The business-for-sale market is just as frustrating for buyers as it is for sellers these days. Although there are plenty of entrepreneurs who want to buy a resorts and vacation cottages business, capital restrictions are holding them back.
Armed with a deliberate selling strategy, sellers of resorts and vacation cottages businesses are finding qualified buyers, even in today's tough market.
When Is the Right Time to Sell?
Most business owners know when it's time to exit their company. There are a lot of naysayers out there advising resorts and vacation cottages business sellers to put their plans on hold until the economy fully rebounds. We aren't nearly as pessimistic about the resorts and vacation cottages business marketplace. With fewer resorts and vacation cottages businesses on the market, there are ample opportunities for sellers to capture the attention of qualified buyers.
Valuation Methods
Professional appraisers can use three methods to determine the value ofa resorts and vacation cottages business: The income method, the asset method and the market method. Appraisals based on the asset method gauge value as a factor of the company's real property and non-tangible assets; appraisals based on the income method consider the business's anticipated revenue. 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.
Sale Costs
You'll need to incorporate the cost of the sale into the calculation the minimum price you are willing to receive for your resorts and vacation cottages business. Good brokerage takes a 10% success fee off the top of the final sale price. Depending on your circumstances, you may also incur substantial expenses in hiring legal, appraisal and accounting professionals. Furthermore, your time has value, so you may need to include a personal compensation consideration in your expense estimates.
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