Exit Planning Advice By Market

Selling an Auto Service and Repair Information and Referral Services Business

At first glance, an unstable economy would seem to be an unfriendly atmosphere for an auto service and repair information and referral services business sale. At Gaebler, we think it's a great time to sell an auto service and repair information and referral services business. Here's why . . ..

Waiting for better economic times to sell your company? That's a common anthem in the small business community.

The business-for-sale market is extremely dynamic. Knowledgeable entrepreneurs understand that market timing isn't nearly as important as other factors in a auto service and repair information and referral services business sale. You just need to know your buyers and structure the deal accordingly.

Laying the Groundwork

Effective auto service and repair information and referral services 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 auto service and repair information and referral services business opportunity.

Advantages of Hiring a Broker

Brokers give auto service and repair information and referral services business sellers distinct advantages in the marketplace. First-rate brokers are extremely skilled at communicating your company's strengths to prospective buyers. More importantly, brokers have the ability to identify serious buyers and maintain confidentiality throughout the sale process. 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 auto service and repair information and referral services business vary according to your business model and circumstances. However, there are generally three valuation methods appraisers use to determine your company's worth. The income method determines value based on the amount of income the business is expected to generate. The asset method, on the other hand, is based on the value of tangible and non-tangible assets (e.g. brands and trademarks). Using recent auto service and repair information and referral services business sales as its foundation, the market method factors market conditions into the valuation process. 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.

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