Exit Planning Tips
Selling a Home Automation Systems and Service Business
Many business leaders say that now isn't the time to try to sell a home automation systems and service business. Don't be deterred by economic uncertainty. There are plenty of reasons why this is the right time to put your home automation systems and service business on the market.
The economy isn't the only thing that is uncertain these days. So are home automation systems and service business buyers, many of whom are waiting to pull the trigger on their next acquisition.
The economy hasn't squashed the market for home automation systems and service businesses. Like always, unprofitable and poorly positioned businesses struggle to find buyers while sellers who have invested time and effort to prepare their sale are being rewarded in the marketplace.
Identifying Serious Buyers
Unfortunately, many of the prospects you will encounter aren't serious buyers. Selling a business is hard enough. You can't afford to waste time on prospects that have no chance of turning their interest into an actual purchase. Your business broker can offer insights about how to quickly spot tire kickers. It's likely that non-serious buyers will want to know everything about your home automation systems and service business during their initial inquires. Avoid releasing details about your home automation systems and service business until you have established that they have the financial capacity to make a legitimate offer.
In a home automation systems and service business sale, pricing is based on a number of factors, including the costs incurred during the sale. 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 home automation systems and service business sale. Furthermore, your time has value, so you may need to include a personal compensation consideration in your expense estimates.
Hoping for a quick home automation systems and service business sale? You may be disappointed. The amount of time your business will be on the market depends on how aggressively it is priced and marketed. Before you can list your home automation systems and service business, you'll need to invest as much as a year in preparing it for prospective buyers. Even though it's conceivable that an attractive opportunity could sell in weeks, an immediate flood of offers could indicate that the business is underpriced.
Share this article
Additional Resources for Entrepreneurs