August 8, 2020  
 
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Selling a Portable Toilets Business

Don't believe anyone who tells you it's easy to sell a portable toilets business. A lot of things need to happen before you can successfully exit your business. We'll tell you how to thrive in the middle of it and get top dollar for your company.

In any economy, there is a right way and a wrong way to sell a business.
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Many business owners don't know that portable toilets businesses are still a hot commodity, to the extent that sellers have properly prepared them for the marketplace.

Valuation Methods

Professional appraisers can use three methods to determine the value ofa portable toilets 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.

Sale Preparation Timeframes

There are no effective shortcuts for selling a portable toilets business. For starters, the financials need to demonstrate a track record of profitability and growth. Next, the business will need to be documented in professional financial statements and manuals that facilitate the ownership transition. Since all of this takes time and effort, a portable toilets business can rarely be ready for the marketplace in less than six months. A more likely scenario is that it will take more than a year to create the conditions necessary to receive the maximum sale price.

Legal Considerations

It pays to invest in first-rate legal counsel when you sell a portable toilets business. Tackling the legal nuances and tax ramifications of a sale without a first-rate business lawyer is an invitation for disaster. It's helpful to introduce your attorney to your broker to facilitate a smooth sale and a productive working relationship.

More Info on Business Transitions and Related Articles

Ready to learn more? You may find these additional resources to be of interest.

Why Hire an Exit Planning Consultant

Marketing a Portable Toilets Business

Terms of Investment Banking Agreement


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If you plan on opening a portable toilets business, these guides will help you get started:

Opening a Portable Toilets Business

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