Business Exits By Industry
Selling a Concrete Contractors Business
With the economy limping along, many concrete contractors business owners are hesitant to put their businesses on the market. At Gaebler, we think it's a great time to sell a concrete contractors business. Here's why . . ..
Selling a concrete contractors business? You'll need to be prepared to address a variety of challenges that are common in the business-for-sale marketplace.
More than a few concrete contractors business owners cave under the pressure and settle for a lower sales price than they should. With the right strategy, your sale doesn't have to end that way.
Selling to a Family Member
The idea of passing a business along to a family member sounds idyllic to many business owners. in reality, a family-based concrete contractors business sale can be more complicated than selling to a stranger. Often, a sale to a family member creates fractures within the family. Whether you offer the family member special concessions or not, either the buyer or other family members may take offense. The best advice: if a family sale is a possibility, it needs to be handled objectively, with ample input from third-party advisors.
Advantages of Hiring a Broker
There are many reasons why hiring a broker makes sense in concrete contractors business sales. Right out of the gate, brokers know how to help their clients properly prepare their businesses for a sale. Even more, the best brokers have a track of record of discreetly identifying likely buyers and contacting them on your behalf. Typical brokerage rates (a.k.a. success fees) run 10% of the final price - an expense that is usually recouped through a higher sales price and less time on the market.
Average Preparation Time
There are no effective shortcuts for selling a concrete contractors business. 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. Next, the business will need to be documented in professional financial statements and manuals that facilitate the ownership transition. Since all of this takes time and effort, a concrete contractors business can rarely be ready for the marketplace in less than six months. If you can afford to wait, we recommend investing a few years in improving your business's financial position before you put it on the market.
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