Profitable Niche Market Exit Plans
Selling an Oil Field Equipment and Supplies Business
Although an oil field equipment and supplies business may not be completely recession-proof, the best companies can survive nearly any storm. All it takes is a strategy to identify solid prospects and convert them to buyers.
Business buyers are a timid lot, even more so now that they are facing an uncertain economic landscape.
Too often oil field equipment and supplies business owners sell for a price that is well below market value. With the right strategy, your sale doesn't have to end that way.
Pros & Cons of a Sale to an Employee
Employee sales have pros and cons. There are some perks to selling the business in-house. The time and expense of locating the right buyer will be nonexistent and you won't have to spend weeks showing the buyer every square inch of the company. However, some employees feel they are entitled to special treatment and pricing, especially if they have played a key role in the company's success. Seller financing is one way to get around the capital deficit of an employee-based oil field equipment and supplies business sale, as long as you are willing to vet the employee's credit worthiness the same as any other buyer.
What to Expect in an Oil Field Equipment & Supplies Business Sale
It's impossible to predict the emotional highs and lows you will experience during the sale of your oil field equipment and supplies business. Many sellers experience discouragement during a long sale process. Although it isn't easy, you can mitigate the emotional impact of an oil field equipment and supplies business sale by setting realistic expectations before you list your business.
Advantages of Hiring a Broker
Brokers give oil field equipment and supplies business sellers distinct advantages in the marketplace. First-rate brokers are extremely skilled at communicating your company's strengths to prospective buyers. More importantly, brokers have the ability to identify serious buyers and maintain confidentiality throughout the sale process. Typical brokerage rates (a.k.a. success fees) run 10% of the final price - an expense that is usually recouped through a higher sales price and less time on the market.
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