Niche Exit Planning Strategies
Selling a Ditching Contractors Business
A good business is about more than dollars and sense. To make your ditching contractors business what it is today, you've had to fully invest yourself in its success. But the hard work isn't done yet. Before you can make a graceful exit, you will have to invest yourself in your business sale.
In a down economy, many ditching contractors business sellers wait to list their businesses until they see signs that the economy has rebounded, making it difficult to accurately evaluate the number of ditching contractors businesses that are actually for sale.
If your exit strategy involves selling a ditching contractors business now, sellers need to make a strong case for buyers to purchase at or near the asking price.
Sweetening the Deal
Seller concessions sweeten the deal for buyers and are a necessary fixture in a sluggish economy. Concessions can consist of non-cash as well as cash incentives. When you've reached your limit on price, consider offering non-cash concessions to encourage a commitment from the buyer. A limited amount of training and mentoring may seem inconsequential to you, but to a young ditching contractors business owner, they can be critical launching points for their ownership journey.
Signs You're in Over Your Head
It's not uncommon for the owners of small ditching contractors businesses to adopt a go-it-alone sale strategy. Plenty of owners sell their ditching contractors businesses unassisted. Although there are exceptions, solo sales typically take longer and are less productive than brokered sales. If you decide to go solo and your business has been on the market for more than six months without a single buyer inquiry, it's time to hire a professional business broker. Lack of buyer enthusiasm or persistence indicates that something is wrong. If that occurs, it's time to bring in the professionals to get your sale back on track.
Preparing for What's Next
The decision to sell your ditching contractors business can't be made without adequate consideration of what will happen after the sale. If you aren't sure what's next, you could be in trouble because future plans and selling strategy are inextricably connected. We frequently encounter business sellers who haven't thought enough about their futures to know whether certain concessions (e.g seller financing) are a real possibility. As a result, they make bad decisions during the sale and experience less-than-optimal outcomes.
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