Exit Planning Advice By Market
Selling an Air Conditioning Parts and Supplies Business
You've learned a lot during your tenure as an air conditioning parts and supplies business owner. Now the trick is to convince cautious buyers that your operation is worth the asking price.
Waiting for better economic times to sell your company? That's a common anthem in the small business community.
Eventually, it will the time will come to exit your business. When that happens, your future plans will be dependent on your ability to receive the highest possible sale price for your air conditioning parts and supplies business.
Average Preparation Time
There are no effective shortcuts for selling an air conditioning parts and supplies 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 air conditioning parts and supplies business for the marketplace. However, to command the highest price, you'll probably need to spend one to two years preparing and positioning your business for buyers.
Working with Appraisers
There is no substitute for a qualified appraisal in the sale of your air conditioning parts and supplies 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. If you're disappointed with the appraiser's estimate of your company's worth, you have the option of seeking a second opinion. However, it's more often the case that you will need to adjust your expectations of your business's value to buyers.
Leveraging Seller Concessions
It's becoming more difficult to sell an air conditioning parts and supplies business without considering seller concessions. By far, seller financing is the most sought-after concession, especially in the current economic environment. Capital is scarce, causing new entrepreneurs to rely on sellers to finance at least part of the purchase price. If you are unwilling or unable to offer financing, be prepared to offer other types of concessions to close the deal.
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