Sell a Business for the Best Price
Selling a Property Maintenance Business
Many business leaders say that now isn't the time to try to sell a property maintenance business. At Gaebler, we think it's a great time to sell a property maintenance business. Here's why . . ..
You're optimistic about the economy and so are we. Now the challenge is to convert business buyers who may have a more skeptical outlook.
You'll always have an excuse for not putting your business on the market. With hard work and dedication, your property maintenance business can be sold at or above fair market value right now.
Pros & Cons of a Sale to an Employee
Although it may seem easier to sell your property maintenance business to an employee, this approach also has some pitfalls. A faithful employee may have the motivation and ability to continue to operate the business. 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 property maintenance business sale, as long as you are willing to vet the employee's credit worthiness the same as any other buyer.
Average Preparation Time
There are no effective shortcuts for selling a property maintenance 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. Next, the business will need to be documented in professional financial statements and manuals that facilitate the ownership transition. Since all of this takes time and effort, a property maintenance 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.
Working with a Professional Accountant
Accountants lay the financial groundwork for a business sale. From a seller perspective, an accountant can offer personal financial assistance, especially when it comes to handling the disposition of sale proceeds. You may also want your accountant to assist in the preparation of professional financials to present to serious buyers. With seller financing becoming common, professional accountants are playing a more central role in negotiations and buyer qualification.
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