Exit Planning Tips

Selling a Hydraulic Hoses and Fittings Business

The sale of a hydraulic hoses and fittings business can be a difficult and trying process. But with a few tips, you can keep your shirt and your sanity in the sale of your business.

It takes dedication to sell a hydraulic hoses and fittings business under the best of circumstances. In the current market, you'll need to redouble your efforts and get serious about convincing prospects that your company is a good investment.

Market timing is a constantly moving target. Knowledgeable entrepreneurs understand that market timing isn't nearly as important as other factors in a hydraulic hoses and fittings business sale. You just need to know your buyers and structure the deal accordingly.

Handling Unexpected Outcomes

Every business seller dreams of a fast sale and a fat payday. However, no one told the marketplace about your expectations. The outcome of your sale will be determined by market forces - not by your personal circumstances or desires. Despite your best efforts, you need to prepare yourself for the possibility of receiving less than you expected from the sale of your hydraulic hoses and fittings business. If buyers don't seem to be willing to meet your expectations, consult with your broker to modify your strategy and market approach.

Finding Prospects

Whether you know it or not, prospective buyers for your hydraulic hoses and fittings business are all around you. In fact, there is a good chance you already know several individuals or companies that might be interested in buying your business for a decent price. We frequently see qualified buyers emerge from the seller's network of business and personal acquaintances. In other cases, sellers take a proactive approach to finding likely buyers and contacting them directly. Competitors may seem like natural prospects and they are. The downside is that they won't pay top dollar and will probably absorb your company into their own.

Dealing with Buyers

Business sellers sometimes struggle to maintain a positive attitude when dealing with buyers. It's completely normal for hydraulic hoses and fittings business sellers to be asked pointed questions during due diligence. Avoid answering buyer concerns with vague generalities. Instead, be as specific as possible, even if it means doing additional research before offering a response. Refer to the Letter of Intent to determine how to wrap up due diligence and move the buyer on to closing.

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