November 22, 2019  
 
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Selling an Auto Recycling and Dismantling Business

Don't believe anyone who tells you it's easy to sell an auto recycling and dismantling business. A lot of things need to happen before you can successfully exit your business. We'll tell you how to thrive in the middle of it and get top dollar for your company.

We're seeing a high volume of shadow inventory in the business-for-sale market.
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Despite the conventional wisdom, we believe current economic conditions are right for selling an auto recycling and dismantling business. We'll tell you what you need to know to achieve a successful sale outcome

Average Timeframes

Hoping for a quick auto recycling and dismantling business sale? You may be disappointed. Unfortunately, there are no hard and fast rules about the length of time your business will be on the market. Pricing plays a role in sale length, but there are no guarantees that a fairly priced business will sell quickly. Before you can list your auto recycling and dismantling business, you'll need to invest as much as a year in preparing it for prospective buyers. Even though it's conceivable that an attractive opportunity could sell in weeks, an immediate flood of offers could indicate that the business is underpriced.

How to Increase Sale Price

A successful auto recycling and dismantling business requires an investment of both time and money. Fortunately, a business broker can minimize the impact on your bank account and personal well-being. If you try to sell your business without a broker, your time will be consumed by the details of the sale. Subsequently, you'll be distracted from the demands of your auto supply store, business will suffer, and the sale price you receive for your company will be dramatically reduced. For a lot reasons, a decision to hire a broker is almost always the right decision, especially for sellers who need to receive top dollar for their auto recycling and dismantling businesses.

Business Valuation

The methods for valuing an auto recycling and dismantling business vary according to your business model and circumstances. However, there are generally three valuation methods appraisers use to determine your company's worth. 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.

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Given your interest in exit planning and in auto recycling and dismantling businesses, you might find these additional resources to be of interest.

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