Exit Planning Advice By Market
Selling an Audio Books Business
Market perceptions play a role in your ability to sell an audio books business. Yet great values are always received well in the business-for-sale marketplace. All it takes is a strategy to identify solid prospects and convert them to buyers.
The audio books business-for-sale marketplace is a nuanced environment, full of pitfalls for sellers who aren't prepared for its demands.
Fortunately for sellers, forward-thinking entrepreneurs continue to be attracted to audio books businesses that exhibit strong financials and potential for future growth.
Advantages of Hiring a Broker
A good broker can offer several benefits to business sellers. Right out of the gate, brokers know how to help their clients properly prepare their businesses for a sale. Second, a good business broker is a master at confidentiality locating audio books business sale prospects and guiding sellers through negotiations. Typical brokerage rates (a.k.a. success fees) run 10% of the final price - an expense that is usually recouped through a higher sales price and less time on the market.
Valuation Methods
The methods for valuing an audio books 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. 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. 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.
Economic Considerations
Think an audio books business sale is simple? Think again. Interest rates, spending, inflation, and other variables directly influence how long your audio books business will be on the market as well as its sales price. But at Gaebler, we advise our business partners to look beyond simple economic data when determining whether it's the right time to sell an audio books business. A much better approach is to focus on the factors that always attract buyers and investors. When it comes to selling an audio books business, successful sales sales often boil down to the business itself - not the economy.
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