So you’re looking to sell your appraisal company. You may be coming close to retirement age or have found you would like to shift into a different career arena. Several small business owners consider their retirement plans to include a transition or sale of their independently-owned business. Maybe you haven’t had the ability to set aside any funds for retirement outside your business. Or your retirement is secure, but you don’t know how to dispose of the appraisal company now. If this is in your future, here are some factors you can measure to ensure a better chance of a successful transition to retirement or sale. 

Consideration 1:  The Value of Your Business

Do you have a valuable appraisal business worth selling? There are many ways to outline and assign value to your business. First, review your hard assets. Do you own a physical building space/structure? Or do you work out of your home? Does your company employ staff, or are you a sole proprietor and operator? Compiling an accurate valuation of the business should include these items in your figures:

  • A solid and successful operating model: This should include historical data and profitability detail. 
  • List of hard assets and hardware: Computers, equipment, furniture add to the value of your company.
  • Recurring or long-standing business/client partnerships: Dependable relationships guarantee growth. 
  • Established marketing strategy and positive reputation in the market: What made your company succeed, and can it be replicated?
  • List of personnel or employees on staff: This is vital for ownership transfer. 

Consideration 2:  Is This the Right Time?

If you had to sell your business tomorrow, would the company sell immediately? This may depend on the environment of the market in your area. The stability or hostility of the economy can also factor in the chance of selling your business smoothly. A buyer wants to be confident that it will run successfully if they were to take on your business today.  How would your company stand out from the competition? Research into the number of like businesses in your region. You’ll want to position your business as a step above the rest. If your company also offers some additional services, it would be appealing to contribute to profits with extra revenue. Work with your accountant or CPA to ensure your books and financials are in clear order. Any risk factors or unnecessary expenses can be addressed before you move forward in the sales process. Read up on the trends occurring right now in your industry. 

Consideration 3:  Work with a Consultant

Buying and selling an appraisal business is a significant undertaking. The potential for success or misfortune can be great if you are not prepared and informed about the process. Seeking the expert help of a good business attorney and a business valuation expert is a smart choice. They will walk you through some of these considerations listed above. Ensure you fully understand your local laws and the fiscal decisions that need to be made in such a transaction. With the right consulting company, you can be sure a more secure and enjoyable retirement is in your near future!

Archstone Group is an appraisal company that works to fight these career obstacles for appraisers. By teaming with industry leaders and independent businesses, leveraging technology and data, and cultivating trust with our clients, Archstone is changing the industry of commercial appraisals. 

Archstone Appraisal Group has U.S. offices in Washington D.C., Boston, West Virginia, and Idaho. Additionally, we maintain a network of over 200 experts devoted exclusively to valuation and consulting services in more than 40 countries. The services we provide are:

  • Commercial Property Appraisals
  • Market Studies
  • Financial Reporting
  • Litigation Support
  • Purchase Price Allocation
  • ARGUS assistance
  • Feasibility Studies
  • Insurance Valuation
  • Lease vs. Purchase
  • Portfolio Management
  • Appraisal Management

Our clients choose us for:

  • Our local presence
  • Technical capabilities
  • Customer Service
  • English and Spanish fluency

At Archstone group, we provide the tools to accomplish appraisals with ease. With our highly skilled and efficient centralized production team committed to streamlining the appraisal process, we can grow your business exponentially. While you think about transitioning into retirement, selling your business, or looking for a strategic partner, consider Archstone Group. We work with Global Companies, Portfolio Managers, Equity LPs, GPs, CFOs or Accounting departments, Attorneys, Property Owners, Lenders, Government Entities, and Nonprofits. 

Schedule an appointment with Archstone Group today.