Business Valuation for Selling a Footwear Wholesale Business
Do you own a footwear wholesale business? Though you may not have considered it, at some point you will likely want to sell your business. When that time comes, getting a business valuation for selling a footwear wholesale business should be your first step. Receiving a footwear wholesale business valuation will show you how to increase the value of your business. You can also make sure your selling price represents the worth of your business.
Peak Business Valuation, business appraiser, values wholesale businesses across the country. Peak can help you understand how to value a footwear wholesale business. Our team of business appraisers is happy to provide you with a complete wholesale business valuation and help you take the next steps in selling your business. Reach out and schedule a free consultation to get started today!
The Purpose of a Footwear Wholesale Business Valuation
A footwear wholesale business valuation is an assessment of the fair market value of a business. Professional business valuators at Peak Business Valuation analyze financial documents to determine the value of a footwear wholesale business. For someone looking to sell a footwear wholesale business, this valuation can help you know the value of your business. Getting this valuation will help you move forward in the selling process. Read Selling a Business to know more about the importance of business valuations when selling a footwear wholesale business.
Understanding the Fair Market Value of a Footwear Wholesale Business
Business appraisers use several methods when valuing a footwear wholesale business. The most common approaches are the market and income approaches. The market approach uses valuation multiples for footwear wholesalers to compare the business to others in the industry. The income approach uses the future income potential of a business to asses the current value. See How to Value a Footwear Wholesaler to learn more. Schedule a free consultation with Peak Business Valuation today to understand the fair market value of a footwear wholesale business.
Maximizing the Value of a Footwear Wholesale Business
Part of the importance of receiving a valuation for selling a footwear wholesale business is understanding how to increase the value of your business. Knowing this can help you maximize the value of your business before selling. During a footwear wholesale business valuation, business appraisers will identify the key value drivers and know how to implement them in your business. Some key value drivers for footwear wholesalers are:
Diversified Product Mix:
Wholesalers that can cater to various consumer needs will thrive in a changing market. Consumers are increasingly looking for leisure wear, presenting an opportunity for footwear wholesalers.
Retailer Relationships:
Footwear wholesale businesses that have strong relationships with retail stores will have a higher value and increased income streams.
Sales and Distribution Teams:
Many businesses are moving to direct-to-consumer sales and cutting out wholesalers entirely. Wholesalers with skilled sales and distribution teams are better prepared for long-term success.
Efficient Technology Use:
Wholesalers that can leverage technology to cut costs will have a higher value.
Understanding how these value drivers affect your business can help you get the most out of the sale of a footwear wholesale business. A footwear wholesale business valuation will help you know keys to maximizing the value of your business. Read Key Value Drivers in Business Valuation to know more about key value drivers. Peak Business Valuation is happy to answer any questions about value drivers for a footwear wholesale business. Reach out today for a free consultation.
Identifying Risks When Selling a Footwear Wholesale Business
Owning and operating a business has inherent risks. A valuation for selling a footwear wholesale business will include an assessment of risks. Knowing and preparing for these risks can help you be better prepared to sell your business for its full value. Some risks of a footwear wholesale business are:
- eCommerce Competition: Consumers and retail shops increasingly look online to meet footwear needs. Wholesalers that can’t fulfill online needs will struggle to compete.
- Highly Regulated Industry: Safety, wage, and intellectual property restrictions regulate the industry. Some regulations provide funding and help to wholesalers, but they also create high barriers to entry.
- Two Major Players: The footwear wholesale industry is largely dominated by Nike and Addidas. Small-scale wholesalers that cater to local markets can compete better with those two major players.
- High Volatility: Volatile fashion trends control the footwear industry. These trends are difficult to predict and adequately adjust for.
Determining a Realistic Listing Price for a Footwear Wholesale Business
One of the most important steps in selling a business is setting a purchase price. A price too high may deter buyers and complicate the selling process. A price set too low may undervalue your business and decrease profit. A valuation for selling a footwear wholesale business will provide you with the fair market value of your business. Getting a footwear wholesale business valuation also increases transparency between buyers and sellers. Check out Deciding on a Listing Price for your Business to learn more!
Peak Business Valuation has years of experience valuing footwear wholesale businesses. In addition, we value hundreds of businesses across the country each year. Peak’s team of professionals can help you receive a valuation for selling a footwear wholesale business. With a footwear wholesale business valuation, you can start the process of selling your business for a fair market value. Schedule a free consultation now!
Utilizing a Valuation Report When Selling a Footwear Wholesale Business
During the valuation process, you will receive a valuation report. This report contains the strengths, weaknesses, opportunities, and risks of a footwear wholesale business. The valuation report also includes the fair market value of a footwear wholesaler determined by the business appraisers. With this report, you can prepare to maximize the value of a footwear wholesale business and get the most out of the sale.
Conclusion
A valuation for selling a footwear wholesale business is essential if you are preparing to sell your business. A footwear wholesale business valuation will help you understand the opportunities in your business. It will also show you how to maximize the value of your business. Additionally, it will help in determining a fair asking price and understanding how to value a footwear wholesale business.
Peak Business Valuation has a team of valuation experts to help you with a footwear wholesale business valuation. With a full valuation report, you can prepare to get the most out of the sale of your business. Whether you are ready to move forward with the sale of your business or want to know more, Peak can help you. Start by scheduling a free consultation today!
