Niche Exit Planning Strategies
Selling a Drain Pipes and Tiles Business
Economic uncertainty influences the timing of many drain pipes and tiles business sales. But based on what we're seeing in the business-for-sale marketplace, we don't think economic conditions should deter you from putting your drain pipes and tiles business on the market.
You're optimistic about the economy and so are we. Now the challenge is to convert business buyers who may have a more skeptical outlook.
Yet what many sellers don't appreciate is that a down economy can present the perfect opportunity to sell a drain pipes and tiles business.
Dealing with Your Emotions
Business sellers sometimes struggle to handle the emotions of a sale. You probably have good reasons for selling your drain pipes and tiles business now, but that doesn't make the emotions you will experience any easier. We advise sellers to discuss their feelings with family members and close friends before, during and after the sale. But since it's important to remain as objective and rational as possible, we also recommend establishing a firm sale strategy and negotiation team to limit the impact of your personal feelings on the sale outcome.
Identifying Serious Buyers
Unfortunately, many of the prospects you will encounter aren't serious buyers. As a seller, it's important to separate the tire kickers from the serious buyers as soon as possible. Each tire kicker is an investment of time and energy that could be poured into finding a more qualified prospect. Your business broker can offer insights about how to quickly spot tire kickers. As a rule, they limit the amount of information that is provided in the initial stages of an engagement, waiting to reveal the juiciest details of the business until the prospect has been thoroughly vetted. Smart sellers may require prospects to provide background and financial information fairly early in the process as a way of verifying the financial capacity to close the deal.
Working with Accountants
Accountants lay the financial groundwork for a business sale. Before your drain pipes and tiles business goes on the market, you should sit down with your accountant to clarify your financial goals and the tax consequences of a sale. A professional audit can ease buyer concerns and amp up the value of your financial presentation. In many instances, your accountant will be invaluable in evaluating prospective buyers' financial position and buying capacity.
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