Exit Planning Tips

Selling a Heat Recovery Systems Equipment and Supplies Business

No one said selling your business in a depressed economy would be easy. But selling your heat recovery systems equipment and supplies business doesn't have to be as daunting as it sounds.

It's a fact: Successful business sales take time.

Undaunted by economic conditions, many heat recovery systems equipment and supplies business sellers are achieving their sale goals through deliberate sale strategies.

Average Preparation Time

It's critical to properly plan for the sale ofa heat recovery systems equipment and supplies business. For starters, the financials need to demonstrate a track record of profitability and growth. Next, the business will need to be documented in professional financial statements and manuals that facilitate the ownership transition. Since all of this takes time and effort, a heat recovery systems equipment and supplies business can rarely be ready for the marketplace in less than six months. A more likely scenario is that it will take more than a year to create the conditions necessary to receive the maximum sale price.

Tips for Working with A Business Broker

Business brokers are professional business sellers. Brokerage is particularly common in the heat recovery systems equipment and supplies business-for-sale market, where aggressive selling strategies are the norm. Brokerage doesn't replace the seller's requirement to be involved in the sale; it augments the seller's efforts and creates a more seamless sale process. To maximize your broker's potential, conduct periodic consultations throughout the process and deliver requested information as quickly as possible.

Business Valuation

The methods for valuing a heat recovery systems equipment and supplies business vary according to your business model and circumstances. However, there are generally three valuation methods appraisers use to determine your company's worth. The income method determines value based on the amount of income the business is expected to generate. The asset method, on the other hand, is based on the value of tangible and non-tangible assets (e.g. brands and trademarks). In many sales, the most accurate valuation comes from the market method which determines value based on the recent sales of similar businesses. A good appraiser will often use multiple valuation methods to arrive at a reasonable estimate. Sellers should take note of the fact that all three valuation methods reward businesses that takes steps to increase assets and income.

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