Business-for-sale markets are less dependent on economic conditions than most sellers think they are.
(article continues below)
More than a few fire alarms and equipment testing business sellers fail to receive fair market value for their businesses. With the right strategy, your sale doesn't have to end that way.
Laying the Groundwork
A successful fire alarms and equipment testing business sale begins with careful planning. Although you are convinced your business has value in the marketplace, the planning process establishes a framework for communicating its value to prospective buyers. A first-rate business broker can give your business an edge by facilitating the preparation process and orienting your presentation toward today's buyers. Specifically, brokers can advise you about the preparation of financial statements and other documents buyers expect to see in a premium fire alarms and equipment testing business opportunity.
Sweetening the Deal
Today's fire alarms and equipment testing business buyers expect sellers to offer concessions to persuade them to close the deal. 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. In the current economy, seller financing is becoming common in fire alarms and equipment testing business sales. If the prospect is inexperienced or lacks credentials in the industry, you can also offer to stay with the business for a specified period of time to help the new owner get on his feet and introduce him to your network of industry contacts.
In a fire alarms and equipment testing business sale, pricing is based on a number of factors, including the costs incurred during the sale. Although they can significantly increase the final sale price, brokers typically receive a 10% commission. Attorneys, accountants and appraisers work for a flat fee that can range from hundreds to thousands of dollars. Furthermore, your time has value, so you may need to include a personal compensation consideration in your expense estimates.
Given your interest in exit planning and in fire alarms and equipment testing businesses, you might find these additional resources to be of interest.
If you plan on opening a fire alarms and equipment testing business, these helpul resources may be just what you've been looking for:
If you consider fire alarms and equipment testing businesses to be sales prospects, there's more applicable information for you elsewhere on our site. Try these useful resources instead:
If you are eager to get business succession tips for a different industry, try our list of exit planning guides below.