Exit Planning Advice By Market
Selling an Alcohol Testing Equipment Business
Many business leaders say that now isn't the time to try to sell an alcohol testing equipment business. But in reality, now may be the perfect time to sell an alcohol testing equipment business.
The economy isn't the only thing that is uncertain these days. So are alcohol testing equipment business buyers, many of whom are waiting to pull the trigger on their next acquisition.
If you're ready to move on, now is the right time to sell your alcohol testing equipment business.
What About Market Conditions?
No one plans to sell an alcohol testing equipment business in a down economy. Although the economy is gaining steam, recovery is slow and entrepreneurs are holding their cards close to their vests. However, many business sellers don't realize that a full economic rebound can have devastating consequences, particularly if sellers who have waited to list their businesses suddenly create a glut in the business-for-sale marketplace. So what's our point? The economy isn't the most important factor in the sale of your business. Instead, you should be focusing on making your alcohol testing equipment business as attractive as possible so to buyers right now.
The methods for valuing an alcohol testing equipment business vary according to your business model and circumstances. However, there are generally three valuation methods appraisers use to determine your company's worth. 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. To drive up your sale price, position your alcohol testing equipment business by improving variables like assets, revenue and profitability during the years leading up to a sale.
In an alcohol testing equipment 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.
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