November 16, 2019 is a daily online magazine covering small business news. We help entrepreneurs transform ideas and innovations into greatness.

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Selling a Company


Selling an Amusement Park Equipment Supplier

Business-for-sale markets are susceptible to a variety of influences. As you know, the amusement park equipment supplier industry has seen more than its share of fluctuations in business values. Many sellers have exited their companies under less-than-ideal circumstances. Yet it's still possible to achieve personal and professional goals when selling an amusement park equipment supplier during challenging economic times.

The buzz in the marketplace is that now isn't the right time to sell an amusement park equipment supplier. Consequently, sellers are holding their businesses off the market until they are sure the market will sustain their asking prices.
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Despite the conventional wisdom, we believe current economic conditions are right for selling an amusement park equipment supplier. Here's how to do it . . .

Valuation Methods

Professional appraisers can use three methods to determine the value ofan amusement park equipment supplier: The income method, the asset method and the market method. 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.

Legal Considerations

It's obvious that you're going to need to hire an attorney to finalize the sale of your amusement park equipment supplier. Competent legal counsel ensures that the sale documents are in proper order. Furthermore, a good lawyers provides the counsel necessary to navigate the tax and liability issues that surround a business sale. We recommend hiring an attorney early in the process to gain insights about the legal consequences of various sale outcomes.

Finding Prospects

Many sellers don't realize how many prospective buyers there are for their businesses. We frequently see qualified buyers emerge from the seller's network of business and personal acquaintances. In other cases, sellers take a proactive approach to finding likely buyers and contacting them directly. If possible, steer clear of selling to a competitor if for no other reason than the fact that competitors pay less for amusement park equipment suppliers than other buyers.

More Exit Planning Articles

Given your interest in exit planning and in amusement park equipment suppliers, you might find these additional resources to be of interest.

Marketing an Amusement Park Equipment Supplier

Pros and Cons of Using Business Brokers

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The learning process for selling an amusement park equipment supplier is an ongoing journey. Send us your comments and questions, and let's continue the conversation!

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