Niche Market Exit Planning Tips
Selling a Building Maintenance Business
No one said selling your business in a depressed economy would be easy. Although it's going to take some work, there is a good chance you can still sell your company at or even above fair market value.
You won't find any magic formulas for selling a building maintenance business, especially while the market is struggling to overcome the perceptions created by a down economy.
At Gaebler, we're seeing building maintenance business sellers succeed by applying sound sales principles combined with a refusal to be intimidated by a down economy.
Average Preparation Time
There are no effective shortcuts for selling a building 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. Unless you have already started planning for your building maintenance business sale, it's going to take at least six months to prepare your business. A more likely scenario is that it will take more than a year to create the conditions necessary to receive the maximum sale price.
Leveraging Seller Concessions
In the current marketplace, seller concessions can make the difference between a business sale and a building maintenance business that languishes on the market for months or even years. By far, seller financing is the most sought-after concession, especially in the current economic environment. Capital is scarce, causing new entrepreneurs to rely on sellers to finance at least part of the purchase price. If you are unwilling or unable to offer financing, be prepared to offer other types of concessions to close the deal.
It pays to invest in first-rate legal counsel when you sell a building maintenance business. Tackling the legal nuances and tax ramifications of a sale without a first-rate business lawyer is an invitation for disaster. It's helpful to introduce your attorney to your broker to facilitate a smooth sale and a productive working relationship.
Share this article
Additional Resources for Entrepreneurs