Exit Planning Advice By Market
Selling an Auto Diagnostic Equipment Repair Business
No one said selling your business in a depressed economy would be easy. Although it's going to take some work, there is a good chance you can still sell your company at or even above fair market value.
Selling a auto diagnostic equipment repair business? You'll need to be prepared to address a variety of challenges that are common in the business-for-sale marketplace.
But at Gaebler, we see auto diagnostic equipment repair businesses still selling at a brisk pace. Like always, unprofitable and poorly positioned businesses struggle to find buyers while sellers who have invested time and effort to prepare their sale are being rewarded in the marketplace.
Working with Appraisers
There is no substitute for a qualified appraisal in the sale of your auto diagnostic equipment repair business. Leading industry appraisers equip sellers with a value gauge that can be accessed during negotiations. Even though you may disagree with the appraiser's value estimates, it's important to give your appraiser the information and independence he needs to present an objective opinion. To ensure accuracy, ask your broker to provide references for appraisers with industry experience.
Sellers aren't the only ones who can make concessions in a business sale. In many instances, sellers can request buyer concessions. Although this scenario frequently plays out around seller financed deals, it's possible to push for a higher sales price or other form of compensation if you agree to mentor the buyer for a specified period of time. Asset exclusions, retained ownership shares and long-term contracts with another of the seller's companies can also be leveraged to extract concessions from buyers.
Average Preparation Time
There are no effective shortcuts for selling an auto diagnostic equipment repair 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. You'll also need to create financial reports, operations manuals, and other documents to create the perception of a turnkey auto diagnostic equipment repair business operation. Unless you have already started planning for your auto diagnostic equipment repair business sale, it's going to take at least six months to prepare your business. If you can afford to wait, we recommend investing a few years in improving your business's financial position before you put it on the market.
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