Optimizing Business Exits

Selling a Railroad Contractors Business

We hear from a lot of business owners who are timid about listing their railroad contractors business. Despite the mood of the market, we think there are still opportunities to receive a good price for your railroad contractors business. Here's what you need to know . . .

Business-for-sale markets are less dependent on economic conditions than most sellers think they are.

The economy hasn't squashed the market for railroad contractors businesses. And the ones that are commanding the highest price tags are the ones with sellers who are committed to the sale process.

Selling to a Family Member

The idea of passing a business along to a family member sounds idyllic to many business owners. in reality, a family-based railroad contractors business sale can be more complicated than selling to a stranger. If it isn't handled properly, a family sale can quickly create irreparable divisions within your family. Whether you offer the family member special concessions or not, either the buyer or other family members may take offense. The best advice: if a family sale is a possibility, it needs to be handled objectively, with ample input from third-party advisors.

Finding Prospects

Still looking for prospective buyers for your business? You probably already know several parties with an interest in acquiring your company. We frequently see qualified buyers emerge from the seller's network of business and personal acquaintances. In other cases, sellers take a proactive approach to finding likely buyers and contacting them directly. If you aren't generating interest in the general marketplace, consider approaching companies that sell complementary products or are closely situated in your supply chain.

Benefits of Third-Party Assistance

At some point, you're going to need help selling your railroad contractors business. Brokers can be an important resource for your sale, especially if you are unfamiliar with the business-for-sale marketplace. Additionally, you may want to hire professionals for legal, valuation and other functions before you put your business on the market. The early recruitment of external resources reduces your risk and results in a more predictable final outcome.

Share this article


Additional Resources for Entrepreneurs

Lists of Venture Capital and Private Equity Firms

Franchise Opportunities

Contributors

Business Glossary