Sell a Business Tips
Selling a Security Systems and Services Business
Many business leaders say that now isn't the time to try to sell a security systems and services business. Don't be deterred by economic uncertainty. There are plenty of reasons why this is the right time to put your security systems and services business on the market.
You've invested too much in your security systems and services business to let it be sold for less than its worth. But unless you adequately prepare for the sale, some lucky buyer may walk away with a huge discount.
Nothing lasts forever and you will ultimately be faced with the task of selling your company. And when that day arrives, you need to know how to sell your security systems and services business in a way that achieves positive outcomes for you and the business.
Working with Appraisers
There is no substitute for a qualified appraisal in the sale of your security systems and services business. By hiring an appraiser to conduct a thorough appraisal of tangible and non-tangible assets prior to listing, you get a measure of the true worth of your business. Although the appraised value of your business may not be the same as the sales price, you gain valuable insight that can be used to your advantage 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.
Selling to a Family Member
Selling a business to a family member might sound like the best of both worlds. You get an exit strategy, your security systems and services business stays in the family, and everyone is happy. Yeah, right. Often, a sale to a family member creates fractures within the family. Whether you offer the family member special concessions or not, either the buyer or other family members may take offense. If possible, discuss a long-term, generational transition with the entire family and seek the advice of a professional consultant.
Understanding Market Timing
Timing is everything when it comes to selling a security systems and services business. A depressed economy means lower interest rates; lower interest rates increase the number of investors willing to take a chance on security systems and services businesses. Sooner or later, rates will rise, increasing the risk for prospective buyers of security systems and services 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.
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