Business Exits By Industry

Selling a Children's Furniture Wholesale and Manufacturers Business

There are few things as intimidating as selling a business in a sluggish economy. Fortunately, a children's furniture wholesale and manufacturers business sale isn't as scary as it seems.

Personal and professional concerns surround the sale of a children's furniture wholesale and manufacturers business. In our experience, a common owner concern is how the sale will affect customers and employees.

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.

Advantages of Hiring a Broker

A good broker can offer several benefits to business sellers. Right out of the gate, brokers know how to help their clients properly prepare their businesses for a sale. More importantly, brokers have the ability to identify serious buyers and maintain confidentiality throughout the sale process. Brokerage isn't cheap. But even though you can spend as much as 10% of the sale price on a good broker, you'll likely achieve decent ROI through an improved final sale price.

Valuation Methods

Professional appraisers can use three methods to determine the value ofa children's furniture wholesale and manufacturers business: The income method, the asset method and the market method. Appraisals based on the asset method gauge value as a factor of the company's real property and non-tangible assets; appraisals based on the income method consider the business's anticipated revenue. Using recent children's furniture wholesale and manufacturers business sales as its foundation, the market method factors market conditions into the valuation process. 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.

Preparing Family Members

You're ready to sell your children's furniture wholesale and manufacturers business, but is your family prepared for the transition? Unfortunately, families often experience turmoil during a sale even when the primary owner is convinced it's the right decision. Unless everyone is prepared for it, the sale could have a devastating effect on your family. The decision to sell a children's furniture wholesale and manufacturers business often begins with a family conversation and a mutual decision to move on the next stage of life.

Share this article


Additional Resources for Entrepreneurs

Lists of Venture Capital and Private Equity Firms

Franchise Opportunities

Contributors

Business Glossary