Profitable Niche Market Exit Plans
Selling an Oil and Gas Company
We hear from a lot of business owners who are timid about listing their oil and gas company. Despite the mood of the market, we think there are still opportunities to receive a good price for your oil and gas company. Here's what you need to know . . .
Market timing is a perennial problem for business sellers.
In our opinion, that kind of thinking doesn't make sense. In fact, this might be the perfect time to sell an oil and gas company. We'll tell you what you need to know to achieve a successful sale outcome
Negotiating Your Sale
As a business seller, you have to be at the top of your negotiating game. More often than not, the person with the most knowledge will come out on top in an oil and gas company negotiation. But before you can negotiate effectively, you need to have a clear sense of your minimum sale requirements. If you lack clarity about your goals, you're guaranteed to fall short of achieving of them. Consult with a broker, advisor, or negotiation team to clarify your expectations and devise a negotiation strategy.
How Much Does It Cost to Sell an oil and gas company?
The calculation of your asking price should include a buffer to cover the expense of the sale process. Good brokerage takes a 10% success fee off the top of the final sale price. Attorneys, accountants and appraisers work for a flat fee that can range from hundreds to thousands of dollars. Furthermore, your time has value, so you may need to include a personal compensation consideration in your expense estimates.
Preparing for What's Next
The decision to sell your oil and gas company can't be made without adequate consideration of what will happen after the sale. many sellers find themselves ill-equipped to handle life after their business and fail to understand that their future plans can influence the sale process. In today's market, many buyers expect seller financing - a concession that might not be a possibility for sellers whose next step requires the entire proceeds at the time of the sale.
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