Advice on Niche Market Exit Planning
Selling a Tanks Inspection and Testing Service
Nervous about selling your tanks inspection and testing service? You shouldn't be. Our tips will help you get the highest price for your tanks inspection and testing service, regardless of what's happening with the economy.
The buzz in the marketplace is that now isn't the right time to sell a tanks inspection and testing service. Consequently, sellers are holding their businesses off the market until they are sure the market will sustain their asking prices.
Fortunately for sellers, forward-thinking entrepreneurs continue to be attracted to tanks inspection and testing services that exhibit strong financials and potential for future growth.
Average Preparation Time
There are no effective shortcuts for selling a tanks inspection and testing service. 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. You'll also need to create financial reports, operations manuals, and other documents to create the perception of a turnkey tanks inspection and testing service operation. Since all of this takes time and effort, a tanks inspection and testing service can rarely be ready for the marketplace in less than six months. A more likely scenario is that it will take more than a year to create the conditions necessary to receive the maximum sale price.
Pros & Cons of a Sale to an Employee
Employee sales have pros and cons. A faithful employee may have the motivation and ability to continue to operate the business. If you need to sell quickly, the timeframe is condensed in an employee sale because you don't need to track down a buyer. Yet most employees lack the means to buy their employer's business at or near the asking price. Seller financing is one way to get around the capital deficit of an employee-based tanks inspection and testing service sale, as long as you are willing to vet the employee's credit worthiness the same as any other buyer.
Handling Unexpected Outcomes
Every business seller dreams of a fast sale and a fat payday. 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. Despite your best efforts, you need to prepare yourself for the possibility of receiving less than you expected from the sale of your tanks inspection and testing service. If buyers don't seem to be willing to meet your expectations, consult with your broker to modify your strategy and market approach.
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