Business Exits By Industry
Selling a Carpet Installation Business
You've heard the naysayers - now isn't the time to sell a carpet installation business. But what they don't know is that many entrepreneurs see carpet installation businesses as a smart business investment.
You need to get a good price for your carpet installation business. To get there, you'll need to set realistic expectations and follow a deliberate selling strategy.
You'll always have an excuse for not putting your business on the market. Any carpet installation business can be sold at any time -- you just need to know how to influence the right buyers.
Legal Considerations
It's obvious that you're going to need to hire an attorney to finalize the sale of your carpet installation business. Competent legal counsel ensures that the sale documents are in proper order. Furthermore, a good lawyers provides the counsel necessary to navigate the tax and liability issues that surround a business sale. We recommend hiring an attorney early in the process to gain insights about the legal consequences of various sale outcomes.
Buyer Concessions
Sellers aren't the only ones who can make concessions in a business sale. In many instances, sellers can request buyer concessions. For example, if the buyer needs seller financing, you can leverage a five-year loan to push for a higher sales price. Although you won't see all of the proceeds upfront, you'll earn interest on the balance and realize a higher price than you would in an all cash deal. You can also choose to exclude certain items like equipment or inventory from the deal if the buyer isn't willing to meet your price expectations. By selling excluded assets on the secondary market, you can compensate for an anemic sale price.
Sale Preparation Timeframes
Preparing a carpet installation business sale takes time. Since buyers prefer to see evidence of future cash flow, you'll want to to strategically lock in cash flows and increase profits before you list the business. Additionally, prospective buyers usually request documentation that allows them to understand the business's daily workflows and operational strategy. Unless you have already started planning for your carpet installation business sale, it's going to take at least six months to prepare your business. A more likely scenario is that it will take more than a year to create the conditions necessary to receive the maximum sale price.
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