Smart Exit Planning Strategies for Niche Markets
Selling a Gas and Water Line Installation Business
There's a right way and a wrong way to sell a gas and water line installation business even if the seller has previous business sales experience. With little room for error, your business sale has to feature the flawless execution of concepts that are driving today's business-for-sale marketplace.
Business-for-sale markets are less dependent on economic conditions than most sellers think they are.
If you're ready to move on, now is the right time to sell your gas and water line installation business.
Timing the Market
Now may be the best time to sell a gas and water line installation business. A depressed economy means lower interest rates; lower interest rates increase the number of investors willing to take a chance on gas and water line installation businesses. When the economy recovers there will be more gas and water line installation business buyers on the market, but higher interest rates could present challenges. Market conditions can be intimidating. But your larger concern should be whether or not your business is ready to be presented to qualified sale prospects.
Signs You're in Over Your Head
Many gas and water line installation business are tempted to save brokerage fees by selling their businesses on their own. 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. Likewise, if buyers seem to express interest but quickly exit when you quote the asking price, it's a sign that your gas and water line installation business is priced out of the market. The remedy is professional brokerage or a consultation with more experienced sellers.
The Case for Confidentiality
Confidentiality determines risk in the business-for-sale marketplace. A low-key selling strategy is a low risk activity because you can control who does (and doesn't) know that your business is on the market. When and if your sale becomes public knowledge, competitors can use that information to weaken your position in the marketplace. Although it can be difficult, it's important to strike a balance between confidentiality and sale promotion. If confidentiality is important to you (and it should be), your best bet is to consult with a professional business broker about maintaining a confidential gas and water line installation business sale.
Share this article
Additional Resources for Entrepreneurs