Smart Exit Planning Strategies for Niche Markets
Selling a Gas Company
The decision to sell your gas company isn't something that should be taken lightly, especially these days. If a business exit is on the horizon, you'll want to check out our suggestions for staying ahead of the market.
You survived all the ups and downs of owning a business. Next, you'll need to prepare yourself to address the rigors of selling a gas company.
The business-for-sale market is extremely dynamic. That's why we think it's important for gas company owners to know that it's possible to sell a business in any economy. To improve sale outcomes, you will simply need to tailor your gas company to today's buyers.
Brokerage Benefits
Brokers give gas company sellers distinct advantages in the marketplace. Right out of the gate, brokers know how to help their clients properly prepare their businesses for a sale. More importantly, brokers have the ability to identify serious buyers and maintain confidentiality throughout the sale process. Typical brokerage rates (a.k.a. success fees) run 10% of the final price - an expense that is usually recouped through a higher sales price and less time on the market.
Timing the Market
Now may be the best time to sell a gas company. A depressed economy means lower interest rates; lower interest rates increase the number of investors willing to take a chance on gas companies. Sooner or later, rates will rise, increasing the risk for prospective buyers of gas companies. So we see market timing as a concern that can be easily mitigated by applying fundamental sales strategies and adequately preparing your company for buyers.
Family Business Sale Tips
The idea of passing a business along to a family member sounds idyllic to many business owners. in reality, a family-based gas company sale can be more complicated than selling to a stranger. Often, a sale to a family member creates fractures within the family. Whether you offer the family member special concessions or not, either the buyer or other family members may take offense. If possible, discuss a long-term, generational transition with the entire family and seek the advice of a professional consultant.
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