Niche Market Exit Planning Tips
Selling a Battery Back Up Systems Business
Few entrepreneurs relish the idea of selling a business in a struggling economy. Yet battery back up systems businesses continue to be sold at a brisk pace, outperforming the sales of many other types of businesses.
If you listen to many entrepreneurs, there never seems to be a good time to put a small business on the market.
To sell a battery back up systems business now, sellers need to make a strong case for buyers to purchase at or near the asking price.
Finding Prospects
Many sellers don't realize how many prospective buyers there are for their businesses. We frequently see qualified buyers emerge from the seller's network of business and personal acquaintances. In other cases, sellers take a proactive approach to finding likely buyers and contacting them directly. Competitors may seem like natural prospects and they are. The downside is that they won't pay top dollar and will probably absorb your company into their own.
Working with a Professional Accountant
Accountants lay the financial groundwork for a business sale. From a seller perspective, an accountant can offer personal financial assistance, especially when it comes to handling the disposition of sale proceeds. Brokers often advise their clients to have an accountant perform an audit of the business prior to sale. With seller financing becoming common, professional accountants are playing a more central role in negotiations and buyer qualification.
Equipment and Inventory Concerns
It's incumbent on buyers to commission their own appraisal of your battery back up systems business's physical assets. Most sellers, however, conduct a pre-sale appraisal to gain an accurate gauge of asset value prior to negotiations. A professional appraisal is a necessity because it gives you the information you need to negotiate a sale price. A pre-listing appraisal also gives you the opportunity to document the condition of your battery back up systems business's assets and possible even make repairs or upgrades to increase the total value of the operation.
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