Niche Exit Planning Strategies
Selling a Dumbwaiters Business
We hear from a lot of business owners who are timid about listing their dumbwaiters business. Despite the mood of the market, we think there are still opportunities to receive a good price for your dumbwaiters business. Here's what you need to know . . .
When it comes to selling a dumbwaiters business, there are no shortcuts to success.
The business-for-sale market is extremely dynamic. That's why we think it's important for dumbwaiters business owners to know that it's possible to sell a business in any economy. The key is to go into the sale with your eyes open and with complete awareness of market condition.
Professional appraisers can use three methods to determine the value ofa dumbwaiters 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. Using recent dumbwaiters business sales as its foundation, the market method factors market conditions into the valuation process. 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.
When Is the Right Time to Sell?
Most business owners know when it's time to exit their company. Opinions are mixed and some consultants are advising dumbwaiters business sellers to put their plans on hold until the economy fully rebounds. We aren't nearly as pessimistic about the dumbwaiters business marketplace. The inventory of what we consider to be quality dumbwaiters businesses is actually low right now and there is room for the right sellers to realize substantial gains with investment-conscious buyers.
A good broker can offer several benefits to business sellers. First-rate brokers are extremely skilled at communicating your company's strengths to prospective buyers. 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.
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