Profitable Niche Market Exit Plans

Selling an Oil Field Equipment Repair Business

With the economy struggling to rebound, the shadow inventory of oil field equipment repair businesses in the business-for-sale marketplace seems to be rising. That could make this the perfect time to list a successful oil field equipment repair business

Most business sellers are interested in disposing of their businesses as quickly as possible. But that's not how an oil field equipment repair business sale works.

Fortunately for sellers, forward-thinking entrepreneurs continue to be attracted to oil field equipment repair businesses that exhibit strong financials and potential for future growth.

Closing Strategies

Today's oil field equipment repair business buyers expect sellers to offer concessions to persuade them to close the deal. But don't limit your view of concessions to financial 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 oil field equipment repair 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.

Professional Appraisals

There is no substitute for a qualified appraisal in the sale of your oil field equipment repair business. Leading industry appraisers equip sellers with a value gauge that can be accessed 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.

Average Timeframes

From the day they decide to sell their company, the question that plagues many owners is how long it will take to sell their oil field equipment repair business. Although asking price and other factors contribute to sale time, it's difficult to predict how long your business will be on the market before you locate the right buyer. To adequately prepare your business listing, plan on spending six months to a year prior to listing. Even though it's conceivable that an attractive opportunity could sell in weeks, an immediate flood of offers could indicate that the business is underpriced.

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