Optimizing Business Exits
Selling a Residential Demolition Business
Market perceptions play a role in your ability to sell a residential demolition business. Yet great values are always received well in the business-for-sale marketplace. All it takes is a strategy to identify solid prospects and convert them to buyers.
According to the experts, there is currently a large volume of shadow inventory in the residential demolition business market -- businesses that are waiting to be listed until the economy recovers.
However, serious buyers also understand the value of a good residential demolition business. So for residential demolition business sellers, today's market is all about convincing buyers that the numbers make their companies worth the asking price.
There is no substitute for a qualified appraisal in the sale of your residential demolition business. Leading industry appraisers equip sellers with a value gauge that can be accessed during negotiations. Even though you may disagree with the appraiser's value estimates, it's important to give your appraiser the information and independence he needs to present an objective opinion. To ensure accuracy, ask your broker to provide references for appraisers with industry experience.
Laying the Groundwork
A successful residential demolition business sale begins with careful planning. Although you are convinced your business has value in the marketplace, the planning process establishes a framework for communicating its value to prospective buyers. Professional business brokers understand buyers and know how to properly communicate a residential demolition business to the marketplace. Specifically, brokers can advise you about the preparation of financial statements and other documents buyers expect to see in a premium residential demolition business opportunity.
Sweetening the Deal
Like it or not, prospective buyers are going to ask you to make certain concessions in the sale of your residential demolition business. Concessions can consist of non-cash as well as cash incentives. In fact, many concessions have little or no financial impact, but go a long way toward making the deal more palatable to young entrepreneurs. A limited amount of training and mentoring may seem inconsequential to you, but to a young residential demolition business owner, they can be critical launching points for their ownership journey.
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