I''m thinking of selling my travel agency to another, larger agency. Is now a good time to sell?
There is good news for you if you''re interested in selling your business now! It''s a great time to be selling a profitable small to mid-sized business, especially as an acquisition for a larger company or to an entrepreneur looking to get started on their own way to personal wealth. Interest rates are low, the economy is improving and interest in small business ownership ia at an all time high. Presumably the other travel agency is interested in your business for strategic reasons. Typically, these type of buyers pay more than purely financially-motivated individual buyers so I would recommend you see if they are truly serious. Also, financing is usually not as big an issue when selling to another, larger company although sellers are frequently asked to take back some stock in the acquiring company as part of the purchase price.
There are several ways you can approach this situation on your own if you''re not yet ready to involve an expensive attorney/CPA. You can start by getting as much information about the business buying/selling process as you can deal with. If you want to handle the preliminary basics yourself, including getting an idea about what your business might be worth and drafting a sale prospectus, I recommend that you read, Preparing Your Business for Sale.
If you want to develop your own detailed valuation and "crunch the numbers" somewhat, I recommend that you look into the BizPricer™ Business Valuation Software which is used by many business owners (as well as potential buyers) to get a fast, accurate estimate of the business''s fair market value.
For some rules of thumb about travel agency valuations so you can determine what ballpark you''re in and also get a wealth of other information about the process of buying/selling a business I highly recommend The Business Reference Guide.
Lastly, there is a very good free article that you mat want to read: Selling Your Business? Follow These Ten Commandments to Avoid Wrecking the Deal. Thanks for your question and good luck with the sale of your business!
|Get more expert advice in Richard Parker's How To Buy A Good Business At A Great Price - the most widely
used reference resource and strategy guide for buying a business.
|Richard Parker is the author of: How To Buy A Good Business At A Great Price, the most widely used reference resource and strategy guide for buying a business. He has purchased ten businesses in his career and has helped thousands of prospective buyers worldwide learn how to buy the right business for sale. He is also founder and President of Diomo Corporation - The Business Buyer Resource Center.|