It takes dedication to sell a licensed contractors business under the best of circumstances. In the current market, you'll need to redouble your efforts and get serious about convincing prospects that your company is a good investment.
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However, serious buyers also understand the value of a good licensed contractors business. So for licensed contractors business sellers, today's market is all about convincing buyers that the numbers make their companies worth the asking price.
Laying the Groundwork
A successful licensed contractors business sale begins with careful planning. Although you are convinced your business has value in the marketplace, the planning process establishes a framework for communicating its value to prospective buyers. Professional business brokers understand buyers and know how to properly communicate a licensed contractors business to the marketplace. At a minimum, you'll want to position your business to receive the highest possible sale price, prepare a packet for prospective buyers and perform an initial appraisal before you put your licensed contractors business on the market.
Broker vs. No Broker
When selling a licensed contractors business, you have two choices: Hire a broker to facilitate the sale or perform the sale unassisted. 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 licensed contractors 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 licensed contractors business sale.
Selling a Licensed Contractors Business to an Employee
Employee sales have pros and cons. A key employee may seem like a natural sales prospect. Since the worker already knows the ins and outs of the business, due diligence should be a breeze, not to mention the fact that you won't have to wait months or years for the right buyer to emerge on the open marketplace. Yet most employees lack the means to buy their employer's business at or near the asking price. Seller financing is one way to get around the capital deficit of an employee-based licensed contractors business sale, as long as you are willing to vet the employee's credit worthiness the same as any other buyer.
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