Niche Market Exit Planning Tips

Selling a Builders and Contractors Business

No one said selling your business in a depressed economy would be easy. Fortunately, a builders and contractors business sale isn't as scary as it seems.

We're seeing a high volume of shadow inventory in the business-for-sale market.

Most builders and contractors businesses are good business opportunities, a fact that is not going unnoticed by today's discerning buyers.

Sale Costs

In a builders and contractors business sale, pricing is based on a number of factors, including the costs incurred during the sale. Good brokerage takes a 10% success fee off the top of the final sale price. Professional consultations can also represent a significant expense during the course of a builders and contractors business sale. Likewise, you'll need to consider how much it will cost to promote the sale as well as the lost time it will take for you and your team to navigate the sale process.

Economic Considerations

Several economic factors can affect the sale of a builders and contractors business. A combination of economic conditions and market sentiment can complicate your sale. If you base the decision to sell your builders and contractors business solely on the market, you may be in for a long wait. Rather than watching the economy, we recommend watching buyers and tailoring your business to meet their investment expectations. When it comes to selling a builders and contractors business, successful sales sales often boil down to the business itself - not the economy.

Equipment and Inventory Concerns

It's incumbent on buyers to commission their own appraisal of your builders and contractors business's physical assets. Your appraisal should occur before you put your business on the market. A professional appraisal is a necessity because it gives you the information you need to negotiate a sale price. A pre-listing appraisal also gives you the opportunity to document the condition of your builders and contractors business's assets and possible even make repairs or upgrades to increase the total value of the operation.

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