Exit Planning Techniques By Market
Selling a Framing Contractors Business
You've learned a lot during your tenure as a framing contractors business owner. The next step is to position your business for the demands of the business-for-sale marketplace.
It takes dedication to sell a framing contractors business under the best of circumstances. In the current market, you'll need to redouble your efforts and get serious about convincing prospects that your company is a good investment.
But they're also savvy enough to know a good deal when they see it. So for framing contractors business sellers, today's market is all about convincing buyers that the numbers make their companies worth the asking price.
Hiring an Attorney
It's obvious that you're going to need to hire an attorney to finalize the sale of your framing contractors business. Competent legal counsel ensures that the sale documents are in proper order. Furthermore, a good lawyers provides the counsel necessary to navigate the tax and liability issues that surround a business sale. We recommend hiring an attorney early in the process to gain insights about the legal consequences of various sale outcomes.
How to Identify Prospective Buyers
Many sellers don't realize how many prospective buyers there are for their businesses. We frequently see qualified buyers emerge from the seller's network of business and personal acquaintances. In other cases, sellers take a proactive approach to finding likely buyers and contacting them directly. Competitors may seem like natural prospects and they are. The downside is that they won't pay top dollar and will probably absorb your company into their own.
Pros & Cons of a Sale to an Employee
Employee sales have pros and cons. A key employee may seem like a natural sales prospect. The time and expense of locating the right buyer will be nonexistent and you won't have to spend weeks showing the buyer every square inch of the company. But in many cases, employees expect to get a deal from their employer based on their years of service to the company. A seller-financed deal may be necessary unless the employee has significant assets or investor backing.
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