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Selling a Crane Rental and Leasing Business
A lot can go wrong during the sale of a crane rental and leasing business even if the seller has previous business sales experience. We'll tell you how to keep your sale and your future plans on track.
The economy isn't the only thing that is uncertain these days. So are crane rental and leasing business buyers, many of whom are waiting to pull the trigger on their next acquisition.
The business-for-sale market is extremely dynamic. So if you're waiting for the perfect market conditions to sell your crane rental and leasing business, you could be waiting a while. If your business is ready to be sold, the time to sell is now. To improve sale outcomes, you will simply need to tailor your crane rental and leasing business to today's buyers.
Signs You're in Over Your Head
Many crane rental and leasing business are tempted to save brokerage fees by selling their businesses on their own. 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. If that occurs, it's time to bring in the professionals to get your sale back on track.
Timing Your crane rental and leasing business Sale
When is it the right time to sell your crane rental and leasing business? If you're asking the question, now may be the time to put your business on the market. There are a lot of naysayers out there advising crane rental and leasing business sellers (or would-be sellers) to take a wait and see approach. We aren't nearly as pessimistic about the crane rental and leasing business marketplace. The inventory of what we consider to be quality crane rental and leasing businesses is actually low right now and there is room for the right sellers to realize substantial gains with investment-conscious buyers.
Valuation Methods
Professional appraisers can use three methods to determine the value ofa crane rental and leasing 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. 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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