Niche Exit Planning Tactics
Selling a Water Distillation Systems Business
There are no guarantees when you sell a water distillation systems business. But our tips will equip you with the information you need to increase the likelihood of a successful sales outcome.
The process of selling a water distillation systems business can be one of the most stressful experiences of your entrepreneurial career.
At Gaebler, we think that's a mistake because with adequate preparation and the right sale strategy, this might be the best time to put your water distillation systems business on the market.
Preparing Family Members
Since your business was a family affair, your family members should also be involved in its sale In many cases, we find that even though business owners are equipped to handle their ownership exit, their family members are having a hard time letting go of the business, especially if family life has revolved around the demands of the water distillation systems business. The sale of the business will likely result in new family dynamics. To keep the family intact, the sale of a water distillation systems business has to include ample communication and shared decision-making.
Are You the Right Person to Sell Your Business?
As the owner, you are both the best and worst person to sell your water distillation systems business. On the one hand, no one knows your business better than you do. When it comes to earnings potential, asset condition, and other considerations, you are the world's leading expert on your company. However, your close connection to your company can also be a drawback. Nearly all sellers have an inflated sense of their company's value. Business brokers and other third-party consultants bring objectivity to the sale process and give you much-needed insight about buyers' mindsets.
Business Valuation
The methods for valuing a water distillation systems business vary according to your business model and circumstances. However, there are generally three valuation methods appraisers use to determine your company's worth. 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.
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