Niche Exit Planning Tactics

Selling a Water Pollution Control Equipment and Systems Business

Forget about what you read in the paper -- water pollution control equipment and systems businesses are being sold everyday and the business-for-sale market is poised for even greater growth in the months ahead.

It takes dedication to sell a water pollution control equipment and systems business under the best of circumstances. In the current market, you'll need to redouble your efforts and get serious about convincing prospects that your company is a good investment.

The business-for-sale market is extremely dynamic. Knowledgeable entrepreneurs understand that market timing isn't nearly as important as other factors in a water pollution control equipment and systems business sale. To improve sale outcomes, you will simply need to tailor your water pollution control equipment and systems business to today's buyers.

Sale Costs

In a water pollution control equipment and systems business sale, pricing is based on a number of factors, including the costs incurred during the sale. Good brokerage takes a 10% success fee off the top of the final sale price. Professional consultations can also represent a significant expense during the course of a water pollution control equipment and systems business sale. Furthermore, your time has value, so you may need to include a personal compensation consideration in your expense estimates.

Sale Preparation Timeframes

It's critical to properly plan for the sale ofa water pollution control equipment and systems business. 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 water pollution control equipment and systems 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.

Seller Financing

Capital is hard to come by these days. Thanks to more stringent commercial lending requirements, sellers have become de facto lenders, providing the financing buyers need to get their feet in the door. Although 100% seller financing isn't recommended, sellers are financing up to 70% of the sale price to close deals.

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