July 11, 2020  
 
Gaebler.com is a daily online magazine covering small business news. We help entrepreneurs transform ideas and innovations into greatness.

Resources for Entrepreneurs

 

Selling a Company

 

Selling an Electric Equipment Service and Repair Business

You've heard the naysayers - now isn't the time to sell a electric equipment service and repair business. But what they don't know is that many entrepreneurs see electric equipment service and repair businesses as a smart business investment.

Selling a electric equipment service and repair business? You'll need to be prepared to address a variety of challenges that are common in the business-for-sale marketplace.
(article continues below)

Success is a factor of preparation, execution and a keen eye for the market. As a business seller, you need to go into the process with the mental goal of presenting your business in the best possible light.

Maximizing Sales Price

If you haven't sold a business before, may be surprised by the time investment that is required to sell an electric equipment service and repair business. Fortunately, a business broker can minimize the impact on your bank account and personal well-being. If you try to sell your business without a broker, your time will be consumed by the details of the sale. Subsequently, you'll be distracted from the demands of your auto supply store, business will suffer, and the sale price you receive for your company will be dramatically reduced. So what's the lesson? In most cases, hiring a business broker is one of the best things you can do to maximize sales price.

Business Valuation

The methods for valuing an electric equipment service and repair business vary according to your business model and circumstances. However, there are generally three valuation methods appraisers use to determine your company's worth. The income method determines value based on the amount of income the business is expected to generate. The asset method, on the other hand, is based on the value of tangible and non-tangible assets (e.g. brands and trademarks). Finally, the market method determines the worth of your electric equipment service and repair business based on the sales of similar businesses in your geographic area. All three methods have multiple variations and it's not uncommon for appraisers to use a combination of the three to determine the value of your business. Sellers should take note of the fact that all three valuation methods reward businesses that takes steps to increase assets and income.

Average Preparation Time

There are no effective shortcuts for selling an electric equipment service and 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. Next, the business will need to be documented in professional financial statements and manuals that facilitate the ownership transition. Since all of this takes time and effort, a electric equipment service and repair business can rarely be ready for the marketplace in less than six months. 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.

More Exit Planning Articles

We think you may find these additional resources to be of interest.

Marketing an Electric Equipment Service and Repair Business

Terms of Investment Banking Agreement

Entrepreneurial Exit Strategies

How Much Is My Business Worth?


Conversation Board

Did we forget to mention something about how to sell an electric equipment service and repair business? If so, tell us what's on your mind and let's keep the conversation going.


Questions, Comments, Tips, and Advice  Code Image - Please contact webmaster if you have problems seeing this image code
Problem Viewing Image
Load New Code

Hoping to Open an Electric Equipment Service & Repair Business?

If you plan on opening an electric equipment service and repair business, these guides will help you get started:

Starting an Electric Equipment Service & Repair Business

Do You Market Products or Services to Electric Equipment Service & Repair Businesses?

If you consider electric equipment service and repair businesses to be sales prospects, there's more applicable information for you elsewhere on our site. These helpful guides are more appropriate for you:

Selling to Electric Equipment Service and Repair Businesses

Mailing Lists for Electric Equipment Service and Repair Businesses

More Business Transfer Information

If you are eager to get business succession tips for a different industry, try our alphabetical directory of exit planning guides below.

Browse more niche exit planning guides:

 

 

 

 

Additional Resources for Entrepreneurs

Lists of Venture Capital and Private Equity Firms

Franchise Opportunities

Contributors

Business Glossary