Exit Planning Advice By Market
Selling an Architectural Services Business
Your architectural services business is a tangible reminder of the passion and dedication you've invested in your entrepreneurial career. But the hard work isn't done yet. Before you can make a graceful exit, you will have to invest yourself in your business sale.
The economy isn't the only thing that is uncertain these days. So are architectural services business buyers, many of whom are waiting to pull the trigger on their next acquisition.
Yet what many sellers don't appreciate is that a down economy can present the perfect opportunity to sell a architectural services business.
Brokerage Benefits
There are many reasons why hiring a broker makes sense in architectural services business sales. Right out of the gate, brokers know how to help their clients properly prepare their businesses for a sale. More importantly, brokers have the ability to identify serious buyers and maintain confidentiality throughout the sale process. Typical brokerage rates (a.k.a. success fees) run 10% of the final price - an expense that is usually recouped through a higher sales price and less time on the market.
Preparing for What's Next
The decision to sell your architectural services business can't be made without adequate consideration of what will happen after the sale. many sellers find themselves ill-equipped to handle life after their business and fail to understand that their future plans can influence the sale process. For example, seller financing can be an extremely valuable concession, especially in the current economy. But if you need all of the proceeds of the sale upfront, seller financing is off the table and you'll need to find a different way to make your architectural services business attractive to buyers.
Identifying Serious Buyers
Unfortunately, many of the prospects you will encounter aren't serious buyers. Even though tire kickers are a fact of life in any sale scenario, they sap valuable time and energy that could be spent identifying more serious prospects. Your business broker can offer insights about how to quickly spot tire kickers. It's likely that non-serious buyers will want to know everything about your architectural services business during their initial inquires. Avoid releasing details about your architectural services business until you have established that they have the financial capacity to make a legitimate offer.
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