Business Exits By Industry
Selling a Chemical Plant Equipment and Supplies Business
Is the economy still a little shaky for a business sale? Sure it is. Yet chemical plant equipment and supplies businesses haven't heard the news and are reporting steady action on the business-for-sale market.
If you listen to many entrepreneurs, there never seems to be a good time to put a small business on the market.
For sellers who are willing to perform adequate sale preparation, the numbers make chemical plant equipment and supplies businesses a solid investment for qualified buyers in the business-for-sale marketplace.
What to Expect in a Chemical Plant Equipment & Supplies Business Sale
The sale of a chemical plant equipment and supplies business can be a rollercoaster of emotions. One minute you'll be elated at the possibility of moving on the next stage of your life and the next minute you'll be nostalgic about the memories of your time at the helm of your business. Given your personal investment, you may also experience disappointment in the market's assessment of your company's value. Although it isn't easy, you can mitigate the emotional impact of a chemical plant equipment and supplies business sale by setting realistic expectations before you list your business.
Seller Financing
Capital is hard to come by these days. Financial institutions have tightened up their lending policies, making it difficult for inexperienced and undercapitalized entrepreneurs to buy chemical plant equipment and supplies businesses. As a result, buyers expect sellers to finance a significant portion of the sale. It's common for sellers to finance as much as 70% of the purchase price with a payoff period of four or five years, sometimes in the form of a balloon payment at the end of the repayment period.
Working with Accountants
Professional accountants lend credibility to the financial preparation of a chemical plant equipment and supplies business sale. Before your chemical plant equipment and supplies business goes on the market, you should sit down with your accountant to clarify your financial goals and the tax consequences of a sale. Brokers often advise their clients to have an accountant perform an audit of the business prior to sale. With seller financing becoming common, professional accountants are playing a more central role in negotiations and buyer qualification.
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