Business Exits By Industry
Selling a Contractors' Signs Business
We hear from a lot of business owners who are timid about listing their contractors' signs business. Despite the mood of the market, we think there are still opportunities to receive a good price for your contractors' signs business. Here's what you need to know . . .
According to the experts, there is currently a large volume of shadow inventory in the contractors' signs business market -- businesses that are waiting to be listed until the economy recovers.
Success is a factor of preparation, execution and a keen eye for the market. But for business sellers, the process begins with having the right mental attitude.
Working with Appraisers
Next to your broker, a skilled appraiser is the person most capable of adding value to the price of your contractors' signs business. Leading industry appraisers equip sellers with a value gauge that can be accessed during negotiations. If you're disappointed with the appraiser's estimate of your company's worth, you have the option of seeking a second opinion. However, it's more often the case that you will need to adjust your expectations of your business's value to buyers.
Realistic Expectations
Emotions run high during the sale of a contractors' signs business. Your estimate of your company's worth is probably skewed by your emotions and your close, personal connection to the business. Although it may be a hard pill to swallow, you need to find a way to introduce objectivity into your sale. Many sellers create a negotiation team to minimize the effect of their personal emotions on negotiations. More importantly, this team can perform a reality check on your expectations for the sale.
Negotiation 101
As a business seller, you have to be at the top of your negotiating game. More often than not, the person with the most knowledge will come out on top in a contractors' signs business negotiation. But great negotiation begins with knowing yourself. What is the realistic price range for your contractors' signs business? What is the minimum amount you're willing to settle on? Are you willing to offer seller financing or other concessions to close the deal? If you can't answer these questions, you're simply not ready to sit down at the negotiation table yet. If you aren't sure what you need, put negotiations on hold until you gain a clearer understanding of your own deal parameters.
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