Optimizing Business Exits
Selling a Rabbit Farm Business
You've learned a lot during your tenure as a rabbit farm business owner. The next step is to position your business for the demands of the business-for-sale marketplace.
You need to get a good price for your rabbit farm business. To get there, you'll need to set realistic expectations and follow a deliberate selling strategy.
Although it takes hard work and dedication, if it's time to exit your rabbit farm business there is a good chance you can sell it for a good price -- even in today's market.
In a rabbit farm business sale, the Letter of Intent contains the vital elements of the deal between the buyer and the seller . If you are seeking buyer concessions, the time to address them is before the Letter of Intent is drafted. For sellers, that makes a close review of the Letter of Intent more than a formality - it's a critical juncture on the path to closing.
Multiple valuation methods exist for a rabbit farm business. Appraisals based on the asset method gauge value as a factor of the company's real property and non-tangible assets; appraisals based on the income method consider the business's anticipated revenue. 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. But regardless of the method that is used, it's always in the seller's best interest to increase revenue and asset values prior to a sale.
The pre-sale checklist for a rabbit farm business is long and is full of critical tasks that will likely determine the success (or failure) of your sale. Perhaps the most important pre-sale consideration is to right-size your expectations to the realities of the market. Once your expectations are in the ballpark, you can move on to making your business presentable to prospective buyers.
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