Niche Market Exit Planning Tips
Selling a Building Contractors' Referral Services Business
It's a misconception that no one is buying building contractors' referral services businesses these days. Savvy entrepreneurs see building contractors' referral services business opportunities as a path to short-term profits and long-term growth. Here's what you need to know to get a fair price for your company.
Personal and professional concerns surround the sale of a building contractors' referral services business. In addition to the personal enjoyment you received from the business, you probably have concerns about what will happen to the people who made your building contractors' referral services business a success.
However, serious buyers also understand the value of a good building contractors' referral services business. So for building contractors' referral services business sellers, today's market is all about convincing buyers that the numbers make their companies worth the asking price.
Factoring In Economic Variables
When you sell a building contractors' referral services business, there are a number of variables you need to consider. Interest rates, spending, inflation, and other variables directly influence how long your building contractors' referral services business will be on the market as well as its sales price. The truth is that perfect market conditions may never materialize. A much better approach is to focus on the factors that always attract buyers and investors. In our experience, the most important factors in the sale of a building contractors' referral services business have little to do with the economy.
How to Work with Business Brokers
Many sellers employ business brokers to manage the details and direction of their sale. Brokerage is particularly common in the building contractors' referral services business-for-sale market, where aggressive selling strategies are the norm. However, your broker will still expect you to materially participate in the sale of your business. Successfully brokered sales are based on solid relationships between brokers and sellers as well as the strict execution of a common selling strategy.
How to Skillfully Address Buyer Concerns
Buyers can present challenges, especially during the due diligence stage. Due diligence preparation can mitigate the irritation factor, but you should still expect to field numerous buyer concerns before closing. Avoid answering buyer concerns with vague generalities. Instead, be as specific as possible, even if it means doing additional research before offering a response. If due diligence drags on too long, your broker may need to intervene.
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