September 26, 2020  
 
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Selling a Company

 

Selling a Railroad Equipment Inspection and Repair Business

A good business is about more than dollars and sense. To make your railroad equipment inspection and repair business what it is today, you've had to fully invest yourself in its success. But the hard work isn't done yet. Before you can make a graceful exit, you will have to invest yourself in your business sale.

You survived all the ups and downs of owning a business. Next, you'll need to prepare yourself to address the rigors of selling a railroad equipment inspection and repair business.
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The economy hasn't squashed the market for railroad equipment inspection and repair 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.

Buyer Concessions

Sellers aren't the only ones who can make concessions in a business sale. In many instances, sellers can request buyer concessions. Often, buyer concessions represent financial incentives that the seller receives in exchange for providing a non-cash benefit (e.g. training, financing, etc.. You can also choose to exclude certain items like equipment or inventory from the deal if the buyer isn't willing to meet your price expectations. By selling excluded assets on the secondary market, you can compensate for an anemic sale price.

Handling Unexpected Outcomes

When you made the decision to sell your railroad equipment inspection and repair business, you had a specific set of outcomes in mind. 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. Sometimes, sellers need to readjust their expectations to accommodate market realties. If buyers don't seem to be willing to meet your expectations, consult with your broker to modify your strategy and market approach.

Current Market Conditions

At first glance, today's market would seem to be a hostile place for railroad equipment inspection and repair business sellers. So far, government intervention and promises that the economy is slowly recovering haven't been enough to alleviate many entrepreneur's fears. Despite the risks, sellers need to be cognizant of the fact that there is a large volume of railroad equipment inspection and repair businesses waiting to be listed until the economy rebounds. When that happens, the buyers' market will become even stronger and have a negative impact on prices. So what's our point? The economy isn't the most important factor in the sale of your business. Instead, you should be focusing on making your railroad equipment inspection and repair business as attractive as possible so to buyers right now.

More Info on Business Transitions and Related Articles

Given your interest in exit planning and in railroad equipment inspection and repair businesses, you might find these additional resources to be of interest.

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