Business sellers are notorious for second-guessing themselves about the right time to put their companies up for sale.
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If your exit strategy involves selling a building materials business now, sellers need to make a strong case for buyers to purchase at or near the asking price.
Should I Hire a Business Broker?
When selling a building materials business, you have two choices: Hire a broker to facilitate the sale or perform the sale unassisted. Is there a cost associated with hiring a broker? Sure - about 10% of the final sale prices. But a good broker will make selling your building materials business much less painful. If you're on the fence, do your research before you make a final decision. BizBuySell.com and other websites offer detailed information about brokers and the process of performing a brokered building materials business sale.
It's becoming more difficult to sell a building materials business without considering seller concessions. 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. As an alternative, clearly state that seller financing is not an option and consider offering other concessions to see the sale through to its completion.
Timing Your building materials business Sale
When is it the right time to sell your building materials business? If you're asking the question, now may be the time to put your business on the market. Some experts are telling building materials business sellers to put their plans on hold until the economy fully rebounds. We aren't nearly as pessimistic about the building materials business marketplace. With so many sellers holding back, there isn't a lot of inventory out there and you may be able to get a great price for your practice depending on how well you prepare the business and your ability to execute your sale strategy.
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