Advice on Niche Market Exit Planning
Selling a Time Clocks Business
Planning and execution can dramatically influence the price you receive for your time clocks business.
Dire economic forecasts have forced many time clocks business sellers into hibernation. Instead of listing their companies now, they're hanging back until they see signs of an economic recovery.
However, serious buyers also understand the value of a good time clocks business. So for time clocks business sellers, today's market is all about convincing buyers that the numbers make their companies worth the asking price.
Multiple valuation methods exist for a time clocks 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.
An experienced appraiser is part and parcel of a successful time clocks business sale. By hiring an appraiser to conduct a thorough appraisal of tangible and non-tangible assets prior to listing, you get a measure of the true worth of your business. Although the appraised value of your business may not be the same as the sales price, you gain valuable insight that can be used to your advantage during negotiations. If you're disappointed with the appraiser's estimate of your company's worth, you have the option of seeking a second opinion. However, it's more often the case that you will need to adjust your expectations of your business's value to buyers.
There is a lot of work that needs to be done before you're ready to sell your time clocks business. The first item on your checklist should be a reality check -- if you plan to sell your business for top dollar in just a few short months, you need to adjust your expectations%However, your first priority should be to set realistic expectations for the selling process and its eventual outcome. Once your expectations are in the ballpark, you can move on to making your business presentable to prospective buyers.
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