Niche Market Exit Planning Tips
Selling a Building and Construction Trade School
In any market, there are sellers and then there are serious sellers. We'll give you the tools you need to be taken seriously when you decide to sell your building and construction trade school.
According to the experts, there is currently a large volume of shadow inventory in the building and construction trade school market -- businesses that are waiting to be listed until the economy recovers.
At Gaebler, we think waiting for the economy to rebound is a mistake for many business owners. Selling a building and construction trade school isn't easy, but we believe sellers can achieve their goals in any economic environment.
Timing the Market
Timing is everything when it comes to selling a building and construction trade school. A depressed economy means lower interest rates; lower interest rates increase the number of investors willing to take a chance on building and construction trade schools. When the economy recovers there will be more building and construction trade school buyers on the market, but higher interest rates could present challenges. So we see market timing as a concern that can be easily mitigated by applying fundamental sales strategies and adequately preparing your company for buyers.
How Much Does It Cost to Sell a building and construction trade school?
You'll need to incorporate the cost of the sale into the calculation the minimum price you are willing to receive for your building and construction trade school. Although they can significantly increase the final sale price, brokers typically receive a 10% commission. Professional consultations can also represent a significant expense during the course of a building and construction trade school sale. Likewise, you'll need to consider how much it will cost to promote the sale as well as the lost time it will take for you and your team to navigate the sale process.
Selling a Building & Construction Trade School to an Employee
Although it may seem easier to sell your building and construction trade school to an employee, this approach also has some pitfalls. A faithful employee may have the motivation and ability to continue to operate the business. 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. But in many cases, employees expect to get a deal from their employer based on their years of service to the company. Seller financing is one way to get around the capital deficit of an employee-based building and construction trade school sale, as long as you are willing to vet the employee's credit worthiness the same as any other buyer.
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