Niche Exit Planning Tactics
Selling a Water Heater Parts and Supplies Business
You've learned a lot during your tenure as a water heater parts and supplies business owner. Before you walk away, you have one more challenge to overcome: A successful and profitable business sale.
Waiting for better economic times to sell your company? That's a common anthem in the small business community.
In our opinion, that kind of thinking doesn't make sense. In fact, this might be the perfect time to sell a water heater parts and supplies business. We'll tell you what you need to know to achieve a successful sale outcome
Understanding Market Timing
Now may be the best time to sell a water heater parts and supplies business. A depressed economy means lower interest rates; lower interest rates increase the number of investors willing to take a chance on water heater parts and supplies businesses. When the economy recovers there will be more water heater parts and supplies business buyers on the market, but higher interest rates could present challenges. 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.
Negotiation 101
It's critical to negotiate from a position of strength. More often than not, the person with the most knowledge will come out on top in a water heater parts and supplies business negotiation. But great negotiation begins with knowing yourself. What is the realistic price range for your water heater parts and supplies business? What is the minimum amount you're willing to settle on? Are you willing to offer seller financing or other concessions to close the deal? If you can't answer these questions, you're simply not ready to sit down at the negotiation table yet. If you aren't sure what you need, put negotiations on hold until you gain a clearer understanding of your own deal parameters.
Brokerage Benefits
Brokers give water heater parts and supplies business sellers distinct advantages in the marketplace. First-rate brokers are extremely skilled at communicating your company's strengths to prospective buyers. More importantly, brokers have the ability to identify serious buyers and maintain confidentiality throughout the sale process. Typical brokerage rates (a.k.a. success fees) run 10% of the final price - an expense that is usually recouped through a higher sales price and less time on the market.
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