Niche Exit Planning Tactics
Selling a Welding Fittings Business
A lot can go wrong during the sale of a welding fittings business these days. More than ever before, it's important for sellers to know the tactics and techniques that are being used to maximize sales price and achieve desired sale outcomes.
You survived all the ups and downs of owning a business. Next, you'll need to prepare yourself to address the rigors of selling a welding fittings business.
Most welding fittings businesses are good business opportunities, a fact that is not going unnoticed by today's discerning buyers.
Sweetening the Deal
Today's welding fittings business buyers expect sellers to offer concessions to persuade them to close the deal. Concessions can consist of non-cash as well as cash incentives. When you've reached your limit on price, consider offering non-cash concessions to encourage a commitment from the buyer. In the current economy, seller financing is becoming common in welding fittings business sales. If the prospect is inexperienced or lacks credentials in the industry, you can also offer to stay with the business for a specified period of time to help the new owner get on his feet and introduce him to your network of industry contacts.
Average Preparation Time
It's critical to properly plan for the sale ofa welding fittings 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. Additionally, prospective buyers usually request documentation that allows them to understand the business's daily workflows and operational strategy. At a minimum, plan on spending six months preparing your welding fittings 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.
Working with Appraisers
An experienced appraiser is part and parcel of a successful welding fittings business sale. Leading industry appraisers equip sellers with a value gauge that can be accessed during negotiations. Following the appraisal, you may choose to delay your sale until you can increase the value of assets and revenue.
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