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Selling a Grain and Feed Handling Equipment Business

Many business leaders say that now isn't the time to try to sell a grain and feed handling equipment business. At Gaebler, we think it's a great time to sell a grain and feed handling equipment business. Here's why . . ..

We hear it all the time: "I'm waiting until the economy recovers to list my business."

Fortunately for sellers, forward-thinking entrepreneurs continue to be attracted to grain and feed handling equipment businesses that exhibit strong financials and potential for future growth.

Current Market Conditions

No one plans to sell a grain and feed handling equipment business in a down economy. Entrepreneurs and investors still exhibit healthy skepticism, despite initial indication that recovery has begun. However, many business sellers don't realize that a full economic rebound can have devastating consequences, particularly if sellers who have waited to list their businesses suddenly create a glut in the business-for-sale marketplace. So what's our point? The economy isn't the most important factor in the sale of your business. Instead, you should be focusing on making your grain and feed handling equipment business as attractive as possible so to buyers right now.

Signs You're in Over Your Head

The grain and feed handling equipment business-for-sale marketplace is a mixed bag of brokered sales and solo efforts. Although there are exceptions, solo sales typically take longer and are less productive than brokered sales. If you decide to go solo and your business has been on the market for more than six months without a single buyer inquiry, it's time to hire a professional business broker. 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.

Valuation Methods

Professional appraisers can use three methods to determine the value ofa grain and feed handling equipment 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. Finally, the market method determines the worth of your grain and feed handling equipment business based on the sales of similar businesses in your geographic area. 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.

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