November 26, 2020  
 
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Selling a Business and Professional Club

We hear from a lot of business owners who are timid about listing their business and professional club. Despite the mood of the market, we think there are still opportunities to receive a good price for your business and professional club. Here's what you need to know . . .

The business-for-sale market is just as frustrating for buyers as it is for sellers these days. Although there are plenty of entrepreneurs who want to buy a business and professional club, capital restrictions are holding them back.
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If you're looking for a reason to wait to put your business on the market, you'll find it. Selling a business and professional club isn't easy, but we believe sellers can achieve their goals in any economic environment.

Advertising Your Sale

Profitable business and professional club sales incorporate comprehensive advertising plans. However, confidentiality and other concerns can present challenges, even for sales professionals. If sale information leaks out, competitors can use it to steal customers and circulate negative messages about your business throughout the industry. There are multiple ways to promote a business and professional club sale, many of which require the assistance of a professional business broker.

When the Sale Goes Off-Course

The business and professional club-for-sale marketplace is a mixed bag of brokered sales and solo efforts. Although there are exceptions, solo sales typically take longer and are less productive than brokered sales. As a rule, no business should sit on the market for more than six months without attracting the interest of at least a handful of qualified buyers. When buyers fail to exhibit substantive interest, it could indicate unrealistic pricing or an inferior selling strategy. If that occurs, it's time to bring in the professionals to get your sale back on track.

Valuation Methods

Professional appraisers can use three methods to determine the value ofa business and professional club: 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. All three methods have multiple variations and it's not uncommon for appraisers to use a combination of the three to determine the value of your business. Sellers should take note of the fact that all three valuation methods reward businesses that takes steps to increase assets and income.

More Info on Business Transitions and Related Articles

Ready to learn more? You may find these additional resources to be of interest.

How Much Is My Business Worth?

Marketing a Business and Professional Club

Terms of Investment Banking Agreement


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Selling a business and professional club is a complex topic, so there's still much more that can be discussed. We welcome your questions, comments and feedback about this topic.


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