Business Exits By Industry

Selling a Commercial Air Conditioning Contractor Business

Planning and execution can dramatically influence the price you receive for your commercial air conditioning contractor business.

Most business sellers are interested in disposing of their businesses as quickly as possible. But that's not how a commercial air conditioning contractor business sale works.

A business sale is always a sophisticated transaction and if you aren't prepared for it, your commercial air conditioning contractor business sale could have an unexpected outcome. To stay on course, you'll need sound strategy and meticulous execution on your side.

Valuation Methods

Multiple valuation methods exist for a commercial air conditioning contractor business. While the income method uses anticipated revenues as a value basis, the asset method focuses on the company's capital, real estate and intellectual assets. Using recent commercial air conditioning contractor business sales as its foundation, the market method factors market conditions into the valuation process. A good appraiser will often use multiple valuation methods to arrive at a reasonable estimate. Sellers should take note of the fact that all three valuation methods reward businesses that takes steps to increase assets and income.

Preparing Your Commercial Air Conditioning Contractor Business for Sale

The outcome of a business sale is largely determined prior to a market listing. Profitable commercial air conditioning contractor business sales begin with a comprehensive strategy that incorporates planning, preparation and market positioning. Even though it may take years to adequately position your commercial air conditioning contractor business, the amount of preparation you perform will have direct correlation on asking and sale prices. 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 Concerns

In a commercial air conditioning contractor business sale, the Letter of Intent contains the vital elements of the deal between the buyer and the seller . If you are seeking buyer concessions, the time to address them is before the Letter of Intent is drafted. So after consulting with your broker and attorney, make sure you're comfortable with the terms of the Letter of Intent. If not, everything you do to close the sale of your commercial air conditioning contractor business may be a waste of time.

Share this article


Additional Resources for Entrepreneurs

Lists of Venture Capital and Private Equity Firms

Franchise Opportunities

Contributors

Business Glossary