Exit Planning Tips
Selling a Heat Pump Dealers Business
Don't believe anyone who tells you it's easy to sell a heat pump dealers business. A lot of things need to happen before you can successfully exit your business. But with a few tips, you can keep your shirt and your sanity in the sale of your business.
Selling a heat pump dealers business? You'll need to be prepared to address a variety of challenges that are common in the business-for-sale marketplace.
Too often heat pump dealers business sellers fail to receive fair market value for their businesses. With the right strategy, your sale doesn't have to end that way.
Timing the Market
Timing is everything when it comes to selling a heat pump dealers business. Although the economy is generally struggling, low interest rates make heat pump dealers businesses more attractive to entrepreneurs who want to get in the game. As the interest rates rise, it will be more difficult for buyers to make the numbers work in their favor. 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.
Sale Costs
The calculation of your asking price should include a buffer to cover the expense of the sale process. Good brokerage takes a 10% success fee off the top of the final sale price. Professional consultations can also represent a significant expense during the course of a heat pump dealers business sale. If you need to compensate employees to assist with the sale, their services should also be considered.
Leveraging Seller Concessions
Seller concessions are becoming more commonplace in business-for-sale transactions. By far, seller financing is the most sought-after concession, especially in the current economic environment. Capital is scarce, causing new entrepreneurs to rely on sellers to finance at least part of the purchase price. As an alternative, clearly state that seller financing is not an option and consider offering other concessions to see the sale through to its completion.
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