Sell a Business for the Best Price
Selling a Protective Coatings Business
Unfortunately, many sellers are waiting to list their protective coatings businesses until the economy fully rebounds. We think that's a mistake because for the right buyers, protective coatings businesses are a great investment.
In a down economy, many protective coatings business sellers wait to list their businesses until they see signs that the economy has rebounded, making it difficult to accurately evaluate the number of protective coatings businesses that are actually for sale.
There are many factors involved with the decision to sell a business. So if you're waiting for the perfect market conditions to sell your protective coatings business, you could be waiting a while. If your business is ready to be sold, the time to sell is now. The key is to go into the sale with your eyes open and with complete awareness of market condition.
Setting the Stage
Effective protective coatings business preparation focuses on communicating value to prospective buyers. A first-rate business broker can give your business an edge by facilitating the preparation process and orienting your presentation toward today's buyers. Specifically, brokers can advise you about the preparation of financial statements and other documents buyers expect to see in a premium protective coatings business opportunity.
Valuation Methods
Professional appraisers can use three methods to determine the value ofa protective coatings 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 protective coatings business based on the sales of similar businesses in your geographic area. 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.
Legal Considerations
It's obvious that you're going to need to hire an attorney to finalize the sale of your protective coatings business. A good lawyer serves a variety of functions during the process. In addition to reviewing the letter of intent, sales contract, and other documents, your attorney should be capable of advising you about due diligence and the tax consequences of the sale. We recommend hiring an attorney early in the process to gain insights about the legal consequences of various sale outcomes.
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