Exit Planning Techniques By Market
Selling a Fence Business
Many business leaders say that now isn't the time to try to sell a fence business. Don't be deterred by economic uncertainty. There are plenty of reasons why this is the right time to put your fence business on the market.
Most business sellers are interested in disposing of their businesses as quickly as possible. But that's not how a fence business sale works.
Yet everyday, hundreds of listed fence businesses manage to pique the interest of qualified buyers. They do it by paying attention to the details that other business sellers overlook.
Should I Hire a Business Broker?
Anyone who has ever sold a fence business has eventually needed to decide whether to use a business broker or go it alone. Is there a cost associated with hiring a broker? Sure - about 10% of the final sale prices. But a good broker will make selling your fence business much less painful. If you're on the fence, do your research before you make a final decision. BizBuySell.com and other websites offer detailed information about brokers and the process of performing a brokered fence business sale.
Average Preparation Time
There are no effective shortcuts for selling a fence business. Since buyers prefer to see evidence of future cash flow, you'll want to to strategically lock in cash flows and increase profits before you list the business. Additionally, prospective buyers usually request documentation that allows them to understand the business's daily workflows and operational strategy. Since all of this takes time and effort, a fence business can rarely be ready for the marketplace in less than six months. A more likely scenario is that it will take more than a year to create the conditions necessary to receive the maximum sale price.
Buyer Identification
Buyers of fence businesses run the gamut. Some are seasoned fence business veterans interested in expanding their operation or adding a new location. Others are first-time entrepreneurs with a taste for the small business lifestyle. Avoid pigeon-holing your search to a single buyer category. That means listing your fence business in trade-specific directories as well as general business-for-sale databases. Networking is another useful tool in locating buyers. It might surprise you to learn how many fence business buyers emerge from conversations with peer groups, vendors, and business associations. In some cases, leads obtained through networking are preferred because they come with personal recommendations.
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