We're seeing a high volume of shadow inventory in the business-for-sale market.
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Fortunately for sellers, forward-thinking entrepreneurs continue to be attracted to landscape lighting businesses that exhibit strong financials and potential for future growth.
The pre-sale checklist for a landscape lighting business is long and is full of critical tasks that will likely determine the success (or failure) of your sale. Perhaps the most important pre-sale consideration is to right-size your expectations to the realities of the market. Once your expectations are in the ballpark, you can move on to making your business presentable to prospective buyers.
Selling to a Family Member
Selling a business to a family member might sound like the best of both worlds. You get an exit strategy, your landscape lighting business stays in the family, and everyone is happy. Yeah, right. If it isn't handled properly, a family sale can quickly create irreparable divisions within your family. If you refuse to discount the sales price or offer other concessions, it could create a rift with the buyer. But if you give in to the buyer's demands, you risk alienating family members who may feel the buyer is receiving an early inheritance. Although it may seem odd, a sale to a family member can take longer than a sale to a stranger because it may take time to work through family issues prior to closing.
As your landscape lighting businesssale nears completion, there is a lot of work remaining to be done. There are several details that still need to be addressed. What will the ownership transition look like? Are you prepared to deal with the tax consequences of receiving a significant sum of money in exchange for your business? How will you prepare your employees for your inevitable exit from the business? If there are pending details that still need to ironed out, address them ASAP to ensure a smooth closing and transition.
Given your interest in exit planning and in landscape lighting businesses, you might find these additional resources to be of interest.
If starting a landscape lighting business is on your agenda, these guides will help you get started:
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If you are looking for exit plan advice for a different kind of business, try our directory of exit planning guides below.