Niche Exit Planning Strategies
Selling a Data Communications Cabling Business
At first glance, an unstable economy would seem to be an unfriendly atmosphere for a data communications cabling business sale. At Gaebler, we think it's a great time to sell a data communications cabling business. Here's why . . ..
When it comes to selling a data communications cabling business, there are no shortcuts to success.
However, serious buyers also understand the value of a good data communications cabling business. So for data communications cabling business sellers, today's market is all about convincing buyers that the numbers make their companies worth the asking price.
Working with Accountants
Accountants lay the financial groundwork for a business sale. Before your data communications cabling 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. In many instances, your accountant will be invaluable in evaluating prospective buyers' financial position and buying capacity.
Current Market Conditions
No one plans to sell a data communications cabling business in a down economy. So far, government intervention and promises that the economy is slowly recovering haven't been enough to alleviate many entrepreneur's fears. However, many business sellers don't realize that a full economic rebound can have devastating consequences, particularly if sellers who have waited to list their businesses suddenly create a glut in the business-for-sale marketplace. So what's our point? The economy isn't the most important factor in the sale of your business. Instead, you should be focusing on making your data communications cabling business as attractive as possible so to buyers right now.
Turning the Tables: Buyer Concessions
Sellers aren't the only ones who can make concessions in a business sale. In many instances, sellers can request buyer concessions. Although this scenario frequently plays out around seller financed deals, it's possible to push for a higher sales price or other form of compensation if you agree to mentor the buyer for a specified period of time. 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.
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