Exit Planning Tips
Selling a Hotlines and Helping Lines Business
With the economy struggling to rebound, the shadow inventory of hotlines and helping lines businesses in the business-for-sale marketplace seems to be rising. That could make this the perfect time to list a successful hotlines and helping lines business
Waiting for better economic times to sell your company? That's a common anthem in the small business community.
Most hotlines and helping lines businesses are good business opportunities, a fact that is not going unnoticed by today's discerning buyers.
Are You the Right Person to Sell Your Business?
An unassisted business sale is a double-edged sword. Without a doubt, you have the most at stake in the outcome of your sale. That makes you the most passionate advocate for your hotlines and helping lines business in the business-for-sale marketplace. However, your close connection to your company can also be a drawback. Business owners are subjective and biased about their company's true worth. At a minimum, conduct an independent appraisal of the hotlines and helping lines business to gain an objective sense of fair market value.
Professional appraisers can use three methods to determine the value ofa hotlines and helping lines 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. 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.
Objectivity is a rare commodity in a business sale. Your estimate of your company's worth is probably skewed by your emotions and your close, personal connection to the business. Although it may be a hard pill to swallow, you need to find a way to introduce objectivity into your sale. A business broker can be a valuable resource in right-sizing your expectations and preparing you for market realities.
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