Niche Market Exit Planning Tips
Selling a Boat Interiors Business
Think boat interiors business sales have dwindled to a standstill? Think again. Here's what you need to know to get a fair price for your company.
In a down economy, many boat interiors business sellers wait to list their businesses until they see signs that the economy has rebounded, making it difficult to accurately evaluate the number of boat interiors businesses that are actually for sale.
Success is a factor of preparation, execution and a keen eye for the market. As a business seller, you need to go into the process with the mental goal of presenting your business in the best possible light.
Professional appraisers can use three methods to determine the value ofa boat interiors 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. 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.
Preparing for What's Next
The decision to sell your boat interiors business can't be made without adequate consideration of what will happen after the sale. 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 pays to invest in first-rate legal counsel when you sell a boat interiors business. 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.
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