Business Exits By Industry
Selling a Construction Management Residential Business
It's a misconception that no one is buying construction management residential businesses these days. Savvy entrepreneurs see construction management residential business opportunities as a path to short-term profits and long-term growth. Although final sales prices vary, the best sales combine strategy and hard work to achieve desired outcomes.
Market timing is a perennial problem for business sellers.
In a skittish economy, construction management residential business sellers can access several strategies to receive fair market value from entrepreneurs who understand the value of a good business investment.
Working with Accountants
Professional accountants lend credibility to the financial preparation of a construction management residential 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. In many instances, your accountant will be invaluable in evaluating prospective buyers' financial position and buying capacity.
Buyer Concessions
Sellers aren't the only ones who can make concessions in a business sale. In many instances, sellers can request buyer concessions. Although this scenario frequently plays out around seller financed deals, it's possible to push for a higher sales price or other form of compensation if you agree to mentor the buyer for a specified period of time. Asset exclusions, retained ownership shares and long-term contracts with another of the seller's companies can also be leveraged to extract concessions from buyers.
Average Preparation Time
There are no effective shortcuts for selling a construction management residential business. Buyers want to see growth trends, healthy profits and other variables that increase the likelihood of long-term success. Additionally, prospective buyers usually request documentation that allows them to understand the business's daily workflows and operational strategy. Unless you have already started planning for your construction management residential business sale, it's going to take at least six months to prepare your business. A more likely scenario is that it will take more than a year to create the conditions necessary to receive the maximum sale price.
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