Business Exit Planning
Selling a Musician Referral Services Business
Unfortunately, many sellers are waiting to list their musician referral services businesses until the economy fully rebounds. We think that's a mistake because for the right buyers, musician referral services businesses are a great investment.
You survived all the ups and downs of owning a business. Next, you'll need to prepare yourself to address the rigors of selling a musician referral services business.
The good news is that ambitious entrepreneurs continue to see musician referral services businesses as a smart business investment -- and the market is rewarding owners who are willing to invest time and energy in their sale.
Selecting a Broker
A good business broker is your best bet for a fast and profitable business sale. In the musician referral services business industry, experience is a must-have characteristic for qualified brokerage. The best brokers should also come with a list of references, a demonstrable track record and a proven plan for selling musician referral services businesses.
Valuation Methods
Professional appraisers can use three methods to determine the value ofa musician referral services business: The income method, the asset method and the market method. The income method determines value based on the amount of income the business is expected to generate. The asset method, on the other hand, is based on the value of tangible and non-tangible assets (e.g. brands and trademarks). Finally, the market method determines the worth of your musician referral services business based on the sales of similar businesses in your geographic area. A good appraiser will often use multiple valuation methods to arrive at a reasonable estimate. To drive up your sale price, position your musician referral services business by improving variables like assets, revenue and profitability during the years leading up to a sale.
Average Timeframes
Hoping for a quick musician referral services business sale? You may be disappointed. Unfortunately, there are no hard and fast rules about the length of time your business will be on the market. Pricing plays a role in sale length, but there are no guarantees that a fairly priced business will sell quickly. To adequately prepare your business listing, plan on spending six months to a year prior to listing. In a good market, an attractive musician referral services business can sell in as little as a few months, although it can take more than a year to find the right buyer after the business is listed.
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