Exit Planning Techniques By Market
Selling a Furnaces Business
You've learned a lot during your tenure as a furnaces business owner. The next step is to position your business for the demands of the business-for-sale marketplace.
It's a fact: Successful business sales take time.
However, serious buyers also understand the value of a good furnaces business. To sell your furnaces business, you'll need to go the extra mile to prove your company has the potential to deliver steady revenue and a solid ROI.
Understanding Market Timing
Worried about timing? Believe it or not, this could be an advantageous time to put a furnaces business up for sale. A depressed economy means lower interest rates; lower interest rates increase the number of investors willing to take a chance on furnaces businesses. As the interest rates rise, it will be more difficult for buyers to make the numbers work in their favor. Market conditions can be intimidating. But your larger concern should be whether or not your business is ready to be presented to qualified sale prospects.
Negotiation Exit Strategy
If the devil is in the details, the negotiation stage of a furnaces business sale is the devil's playground. There are countless details that need to be hammered out before a Letter of Intent can be prepared and the process can move on to the due diligence stage. As the seller, you'll be on the front lines of negotiation and will need to know when it's time to bring negotiations to an end. In a furnaces business sale, a stalled negotiation can be an indication that the deal is dead. If you are adequately prepared, you'll know what your bottom line is -- and if the buyer is unwilling to meet your bottom line requirements or if negotiations are stalled, it's time to step back from the negotiating table and re-evaluate your options.
Sale Costs
You'll need to incorporate the cost of the sale into the calculation the minimum price you are willing to receive for your furnaces business. Good brokerage takes a 10% success fee off the top of the final sale price. Professional consultations can also represent a significant expense during the course of a furnaces business sale. Furthermore, your time has value, so you may need to include a personal compensation consideration in your expense estimates.
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