Optimizing Business Exits
Selling a Radiator Covers and Enclosures Business
You've heard the naysayers - now isn't the time to sell a radiator covers and enclosures business. But what they don't know is that many entrepreneurs see radiator covers and enclosures businesses as a smart business investment.
Business sellers are notorious for second-guessing themselves about the right time to put their companies up for sale.
Yet what many sellers don't appreciate is that a down economy can present the perfect opportunity to sell a radiator covers and enclosures business.
Sale Costs
You'll need to incorporate the cost of the sale into the calculation the minimum price you are willing to receive for your radiator covers and enclosures business. 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 radiator covers and enclosures business sale. Likewise, you'll need to consider how much it will cost to promote the sale as well as the lost time it will take for you and your team to navigate the sale process.
Understanding Market Timing
Timing is everything when it comes to selling a radiator covers and enclosures business. A depressed economy means lower interest rates; lower interest rates increase the number of investors willing to take a chance on radiator covers and enclosures businesses. Sooner or later, rates will rise, increasing the risk for prospective buyers of radiator covers and enclosures businesses. 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.
Pros & Cons of a Sale to an Employee
Employee sales have pros and cons. A key employee may seem like a natural sales prospect. If you need to sell quickly, the timeframe is condensed in an employee sale because you don't need to track down a buyer. However, some employees feel they are entitled to special treatment and pricing, especially if they have played a key role in the company's success. Seller financing is one way to get around the capital deficit of an employee-based radiator covers and enclosures business sale, as long as you are willing to vet the employee's credit worthiness the same as any other buyer.
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