Selling a Business Advice

Selling an Industrial Contractors Business

You've learned a lot during your tenure as an industrial contractors business owner. The next step is to position your business for the demands of the business-for-sale marketplace.

These days, the small and medium-sized business market is more confusing than ever before. Although there are plenty of entrepreneurs who want to buy an industrial contractors business, capital restrictions are holding them back.

There is no simple way to sell a business. But the most prepared industrial contractors business sellers are achieving fair market value and more for their companies through persistence and the application of sound selling techniques.

The Best Person to Sell Your Industrial Contractors Business

An unassisted business sale is a double-edged sword. On the one hand, no one knows your business better than you do. When it comes to earnings potential, asset condition, and other considerations, you are the world's leading expert on your company. However, your close connection to your company can also be a drawback. You see your company's potential. But buyers don't pay for potential - they pay for current market value. At a minimum, conduct an independent appraisal of the industrial contractors business to gain an objective sense of fair market value.

Valuation Methods

Professional appraisers can use three methods to determine the value ofan industrial contractors business: The income method, the asset method and the market method. Appraisals based on the asset method gauge value as a factor of the company's real property and non-tangible assets; appraisals based on the income method consider the business's anticipated revenue. Using recent industrial contractors business sales as its foundation, the market method factors market conditions into the valuation process. A good appraiser will often use multiple valuation methods to arrive at a reasonable estimate. Sellers should take note of the fact that all three valuation methods reward businesses that takes steps to increase assets and income.

Timing the Market

Now may be the best time to sell an industrial contractors business. A depressed economy means lower interest rates; lower interest rates increase the number of investors willing to take a chance on industrial contractors businesses. When the economy recovers there will be more industrial contractors business buyers on the market, but higher interest rates could present challenges. So we see market timing as a concern that can be easily mitigated by applying fundamental sales strategies and adequately preparing your company for buyers.

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