Business Exits By Industry
Selling a Charts Business
Business-for-sale markets are susceptible to a variety of influences. As you know, the charts business market has been exceptionally volatile. Many sellers have exited their companies under less-than-ideal circumstances. Yet it's still possible to achieve personal and professional goals when selling a charts business during challenging economic times.
Selling a charts business? You'll need to be prepared to address a variety of challenges that are common in the business-for-sale marketplace.
You'll always have an excuse for not putting your business on the market. Selling a charts business isn't easy, but we believe sellers can achieve their goals in any economic environment.
What About Market Conditions?
At first glance, today's market would seem to be a hostile place for charts business sellers. So far, government intervention and promises that the economy is slowly recovering haven't been enough to alleviate many entrepreneur's fears. 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. So what's our point? The economy isn't the most important factor in the sale of your business. Instead, you should be focusing on making your charts business as attractive as possible so to buyers right now.
Professional appraisers can use three methods to determine the value ofa charts business: The income method, the asset method and the market method. The income method determines value based on the amount of income the business is expected to generate. The asset method, on the other hand, is based on the value of tangible and non-tangible assets (e.g. brands and trademarks). In many sales, the most accurate valuation comes from the market method which determines value based on the recent sales of similar businesses. 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.
Hiring an Attorney
There is no way around the requirement to hire professional legal assistance when you sell your charts business. A good lawyer serves a variety of functions during the process. In addition to reviewing the letter of intent, sales contract, and other documents, your attorney should be capable of advising you about due diligence and the tax consequences of the sale. We recommend hiring an attorney early in the process to gain insights about the legal consequences of various sale outcomes.
Share this article
Additional Resources for Entrepreneurs