Business Exits By Industry
Selling a Combustion Controls Business
When it's time to sell your combustion controls business, your future plans depend on your ability to get the highest possible sales price. Here's how to do it . . .
In a down economy, many combustion controls 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 combustion controls businesses that are actually for sale.
Too often combustion controls business sellers fail to receive fair market value for their businesses. Smart sellers know the value of their companies are prepared to identify buyers who are willing to pay top dollar.
Current Market Conditions
No one plans to sell a combustion controls business in a down economy. Entrepreneurs and investors still exhibit healthy skepticism, despite initial indication that recovery has begun. Despite the risks, sellers need to be cognizant of the fact that there is a large volume of combustion controls businesses waiting to be listed until the economy rebounds. When that happens, the buyers' market will become even stronger and have a negative impact on prices. So what's our point? The economy isn't the most important factor in the sale of your business. Instead, you should be focusing on making your combustion controls business as attractive as possible so to buyers right now.
Seller Financing
Capital is hard to come by these days. Banks and other lending institutions aren't eager to lend to unproven and undercapitalized combustion controls business buyers regardless of the business's potential. Rather than abandon their plans entirely, many buyers are pursuing finance concessions from sellers. Although 100% seller financing isn't recommended, sellers are financing up to 70% of the sale price to close deals.
Post-Sale Details
Due diligence has ended and you're ready to close on the sale of your combustion controls business. All that stands between you and the sale proceeds is a few signatures, right? Not so fast. The transition to the new owner, the distribution of sale proceeds and other issues can weigh heavily on sellers. If there are pending details that still need to ironed out, address them ASAP to ensure a smooth closing and transition.
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