Optimizing Business Exits
Selling a Refrigeration Dealers Commercial and Industrial Business
We hear it all the time: 'This economy is a hostile environment for a business sale.' However, refrigeration dealers commercial and industrial businesses haven't been deterred. In fact, we think this economy is a ripe environment for a refrigeration dealers commercial and industrial business sale.
When the economy recovers, we expect to see a sudden influx of refrigeration dealers commercial and industrial businesses in the business-for-sale marketplace. Although these companies have been for sale, their owners have resisted listing them until a better economy materializes.
Eventually, it will the time will come to exit your business. When that happens, your future plans will be dependent on your ability to receive the highest possible sale price for your refrigeration dealers commercial and industrial business.
Seller Concessions
It's becoming more difficult to sell a refrigeration dealers commercial and industrial business without considering seller concessions. In a down economy sellers become bankers; an unwillingness to finance at least part of the sale of a refrigeration dealers commercial and industrial business can translate into a dead deal. Capital is scarce, causing new entrepreneurs to rely on sellers to finance at least part of the purchase price. If you are unwilling or unable to offer financing, be prepared to offer other types of concessions to close the deal.
Working with Accountants
Accountants lay the financial groundwork for a business sale. From a seller perspective, an accountant can offer personal financial assistance, especially when it comes to handling the disposition of sale proceeds. Brokers often advise their clients to have an accountant perform an audit of the business prior to sale. In many instances, your accountant will be invaluable in evaluating prospective buyers' financial position and buying capacity.
Sale Preparation Timeframes
Preparing a refrigeration dealers commercial and industrial business sale takes time. Since buyers prefer to see evidence of future cash flow, you'll want to to strategically lock in cash flows and increase profits before you list the business. Next, the business will need to be documented in professional financial statements and manuals that facilitate the ownership transition. At a minimum, plan on spending six months preparing your refrigeration dealers commercial and industrial business for the marketplace. A more likely scenario is that it will take more than a year to create the conditions necessary to receive the maximum sale price.
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