These days, the prospect of selling a general merchandise wholesale business is so daunting that many would-be sellers are biding their time, waiting for a break in the economic clouds.
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Yet what many sellers don't appreciate is that a down economy can present the perfect opportunity to sell a general merchandise wholesale business.
It's obvious that you're going to need to hire an attorney to finalize the sale of your general merchandise wholesale business. Competent legal counsel ensures that the sale documents are in proper order. Furthermore, a good lawyers provides the counsel necessary to navigate the tax and liability issues that surround a business sale. It's helpful to introduce your attorney to your broker to facilitate a smooth sale and a productive working relationship.
Multiple valuation methods exist for a general merchandise wholesale business. 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 general merchandise wholesale business sales as its foundation, the market method factors market conditions into the valuation process. All three methods have multiple variations and it's not uncommon for appraisers to use a combination of the three to determine the value of your business. Sellers should take note of the fact that all three valuation methods reward businesses that takes steps to increase assets and income.
Sale Preparations for Your General Merchandise Wholesale Business
The outcome of a business sale is largely determined prior to a market listing. Successful general merchandise wholesale business sales opportunities leverage a long-term strategy to increase the value of the business to buyers. Even though it may take years to adequately position your general merchandise wholesale business, the amount of preparation you perform will have direct correlation on asking and sale prices. But your efforts to improve your company's position and profitability will only be effective if you invest similar effort into the preparation of accurate financial statements for buyers.
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