Business Exits By Industry
Selling a Cabinets Wholesale and Manufacturer
Most businesses are susceptible to economic conditions and wholesale or manufacturer of cabinets businesses are no exception. But in some cases, a down economy can actually improve saleability. All it takes is a strategy to identify solid prospects and convert them to buyers.
Most business sellers are interested in disposing of their businesses as quickly as possible. But that's not how a wholesale or manufacturer of cabinets business sale works.
In order to market a wholesale or manufacturer of cabinets business in this environment, sellers need to make a strong case for buyers to purchase at or near the asking price.
When the Sale Goes Off-Course
The wholesale or manufacturer of cabinets business-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. Lack of buyer enthusiasm or persistence indicates that something is wrong. The remedy is professional brokerage or a consultation with more experienced sellers.
Understanding Market Timing
Now may be the best time to sell a wholesale or manufacturer of cabinets business. A depressed economy means lower interest rates; lower interest rates increase the number of investors willing to take a chance on wholesale or manufacturer of cabinets businesses. As the interest rates rise, it will be more difficult for buyers to make the numbers work in their favor. So we see market timing as a concern that can be easily mitigated by applying fundamental sales strategies and adequately preparing your company for buyers.
Professional appraisers can use three methods to determine the value ofa wholesale or manufacturer of cabinets 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.
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