Business Exit Planning
Selling a Moving and Storage Business
The decision to sell your moving and storage business isn't something that should be taken lightly, especially these days. If a business exit is on the horizon, you'll want to check out our suggestions for staying ahead of the market.
You won't find any magic formulas for selling a moving and storage business, especially while the market is struggling to overcome the perceptions created by a down economy.
Many business owners don't know that moving and storage businesses are still a hot commodity, to the extent that sellers have properly prepared them for the marketplace.
When you sell a moving and storage business, there are a number of variables you need to consider. Many would-be sellers are laser-focused on economic indicators, anxiously awaiting the perfect time to list their companies. The truth is that perfect market conditions may never materialize. If you don't believe your moving and storage business would sell for top dollar right now, what can you do to make it more attractive to the marketplace? Increase profitability? Build brand visibility?. In our experience, the most important factors in the sale of a moving and storage business have little to do with the economy.
Multiple valuation methods exist for a moving and storage 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. 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.
Working with Accountants
Professional accountants lend credibility to the financial preparation of a moving and storage business sale. Before your moving and storage business goes on the market, you should sit down with your accountant to clarify your financial goals and the tax consequences of a sale. Brokers often advise their clients to have an accountant perform an audit of the business prior to sale. In many instances, your accountant will be invaluable in evaluating prospective buyers' financial position and buying capacity.
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