Niche Market Exit Planning Tips
Selling a Burglar Alarm Systems and Monitoring Business
Few entrepreneurs relish the idea of selling a business in a struggling economy. Yet burglar alarm systems and monitoring businesses continue to be sold at a brisk pace, outperforming the sales of many other types of businesses.
In a down economy, many burglar alarm systems and monitoring business sellers wait to list their businesses until they see signs that the economy has rebounded, making it difficult to accurately evaluate the number of burglar alarm systems and monitoring businesses that are actually for sale.
A business sale is always a sophisticated transaction and if you aren't prepared for it, your burglar alarm systems and monitoring business sale could have an unexpected outcome. To stay on course, you'll need sound strategy and meticulous execution on your side.
Sale Preparations for Your Burglar Alarm Systems & Monitoring Business
The outcome of a business sale is largely determined prior to a market listing. Successful burglar alarm systems and monitoring business listings are the culmination of a preparation process that began months or even years ahead of time. Branding, market positioning, and revenue growth take time, but they directly influence the price your burglar alarm systems and monitoring business will command in the marketplace. But your efforts to improve your company's position and profitability will only be effective if you invest similar effort into the preparation of accurate financial statements for buyers.
Legal Considerations
It pays to invest in first-rate legal counsel when you sell a burglar alarm systems and monitoring business. Competent legal counsel ensures that the sale documents are in proper order. Furthermore, a good lawyers provides the counsel necessary to navigate the tax and liability issues that surround a business sale. We recommend hiring an attorney early in the process to gain insights about the legal consequences of various sale outcomes.
Tips for Seller Financing
Capital is hard to come by these days. Financial institutions have tightened up their lending policies, making it difficult for inexperienced and undercapitalized entrepreneurs to buy burglar alarm systems and monitoring businesses. As a result, buyers expect sellers to finance a significant portion of the sale. Although 100% seller financing isn't recommended, sellers are financing up to 70% of the sale price to close deals.
Share this article
Additional Resources for Entrepreneurs