You survived all the ups and downs of owning a business. Next, you'll need to prepare yourself to address the rigors of selling a barge line.
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But the good news is that there is still demand for barge lines that present well and offer solid earning potential.
Preparing for What's Next
What will happen if your barge line is a success? many sellers find themselves ill-equipped to handle life after their business and fail to understand that their future plans can influence the sale process. In today's market, many buyers expect seller financing - a concession that might not be a possibility for sellers whose next step requires the entire proceeds at the time of the sale.
It's obvious that you're going to need to hire an attorney to finalize the sale of your barge line. 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. In some cases, an attorney may also provide assistance in securing long-term leases or vendor contracts to make your barge line more attractive to buyers. If you don't know an attorney with experience in the business-for-sale market, ask your broker for a referral.
Professional appraisers can use three methods to determine the value ofa barge line: 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. 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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