The economy isn't the only thing that is uncertain these days. So are auto upholstery cleaning business buyers, many of whom are waiting to pull the trigger on their next acquisition.
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Success is a factor of preparation, execution and a keen eye for the market. But for business sellers, the process begins with having the right mental attitude.
We run into a lot of auto upholstery cleaning business sellers who intend to wait until the final contract to negotiate details. Big mistake. With few exceptions, sale structure is hammered out early, in the Letter of Intent . If you are seeking buyer concessions, the time to address them is before the Letter of Intent is drafted. Never sign a Letter of Intent until it has been properly reviewed by your attorney and you are in complete agreement with everything it contains.
Professional appraisers can use three methods to determine the value ofan auto upholstery cleaning business: 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. Finally, the market method determines the worth of your auto upholstery cleaning business based on the sales of similar businesses in your geographic area. As a safeguard, consider conducting appraisals using variations of multiple appraisal methods. Sellers should take note of the fact that all three valuation methods reward businesses that takes steps to increase assets and income.
Current Market Conditions
At first glance, today's market would seem to be a hostile place for auto upholstery cleaning business sellers. Although the economy is gaining steam, recovery is slow and entrepreneurs are holding their cards close to their vests. However, many business sellers don't realize that a full economic rebound can have devastating consequences, particularly if sellers who have waited to list their businesses suddenly create a glut in the business-for-sale marketplace. The simple truth is that the economy shouldn't dictate whether or not now is the right time to sell an auto upholstery cleaning business. Your individual circumstances and personal goals are more influential factors in determining when it's time to put your business on the market.
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