You survived all the ups and downs of owning a business. Next, you'll need to prepare yourself to address the rigors of selling an art appraisal business.
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Fortunately for sellers, forward-thinking entrepreneurs continue to be attracted to art appraisal businesses that exhibit strong financials and potential for future growth.
Broker vs. No Broker
When selling an art appraisal business, you have two choices: Hire a broker to facilitate the sale or perform the sale unassisted. Is there a cost associated with hiring a broker? Sure - about 10% of the final sale prices. But a good broker will make selling your art appraisal business much less painful. You can also expect to receive a higher sales price for your business in a broker-assisted deal.
Timing the Market
Now may be the best time to sell an art appraisal business. A depressed economy means lower interest rates; lower interest rates increase the number of investors willing to take a chance on art appraisal businesses. As the interest rates rise, it will be more difficult for buyers to make the numbers work in their favor. At Gaebler, we recognize the value of timing the sale of your art appraisal business. But we think it's more important to properly position your business for current market conditions -- whatever they may be.
Dealing with Tire Kickers
Unfortunately, many of the prospects you will encounter aren't serious buyers. As a seller, it's important to separate the tire kickers from the serious buyers as soon as possible. Each tire kicker is an investment of time and energy that could be poured into finding a more qualified prospect. Your business broker can offer insights about how to quickly spot tire kickers. As a rule, they limit the amount of information that is provided in the initial stages of an engagement, waiting to reveal the juiciest details of the business until the prospect has been thoroughly vetted. Smart sellers may require prospects to provide background and financial information fairly early in the process as a way of verifying the financial capacity to close the deal.
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