Smart Exit Planning Strategies for Niche Markets
Selling a Geophysicists Business
Selling a geophysicists business doesn't happen overnight. It takes a deliberate process to get top dollar for your company.
Economic data is scary stuff for small business owners. But quarterly data dumps don't impact geophysicists business sales nearly as much as sale strategy.
Despite the overall mood of the marketplace, geophysicists businesses are still an attractive investment, especially when sellers have invested time and energy in preparing their companies for a sale.
We run into a lot of geophysicists business sellers who intend to wait until the final contract to negotiate details. Big mistake. With few exceptions, sale structure is hammered out early, in the Letter of Intent . If you are seeking buyer concessions, the time to address them is before the Letter of Intent is drafted. For sellers, that makes a close review of the Letter of Intent more than a formality - it's a critical juncture on the path to closing.
Professional appraisers can use three methods to determine the value ofa geophysicists 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. 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.
Factoring In Economic Variables
When you sell a geophysicists business, there are a number of variables you need to consider. Interest rates, spending, inflation, and other variables directly influence how long your geophysicists business will be on the market as well as its sales price. The truth is that perfect market conditions may never materialize. A much better approach is to focus on the factors that always attract buyers and investors. In our experience, the most important factors in the sale of a geophysicists business have little to do with the economy.
Have Friends Who Might Like This Article?
Let them know on LinkedIn
Ready to Learn More? We Think You Might Like These Articles:
Additional Resources for Entrepreneurs