Niche Exit Planning Strategies
Selling a Drug and Alcohol Detection and Testing Business
Is the economy still a little shaky for a business sale? Sure it is. Yet drug and alcohol detection and testing businesses continue to sell at a brisk pace, regardless of the economy.
Personal and professional concerns surround the sale of a drug and alcohol detection and testing business. In our experience, a common owner concern is how the sale will affect customers and employees.
At Gaebler, we think that's a mistake because with adequate preparation and the right sale strategy, this might be the best time to put your drug and alcohol detection and testing business on the market.
Pre-Sale Checklist
There is a lot of work that needs to be done before you're ready to sell your drug and alcohol detection and testing business. Perhaps the most important pre-sale consideration is to right-size your expectations to the realities of the market. Once your expectations are in the ballpark, you can move on to making your business presentable to prospective buyers.
Professional Appraisals
An experienced appraiser is part and parcel of a successful drug and alcohol detection and testing business sale. By hiring an appraiser to conduct a thorough appraisal of tangible and non-tangible assets prior to listing, you get a measure of the true worth of your business. Although the appraised value of your business may not be the same as the sales price, you gain valuable insight that can be used to your advantage during negotiations. If you're disappointed with the appraiser's estimate of your company's worth, you have the option of seeking a second opinion. However, it's more often the case that you will need to adjust your expectations of your business's value to buyers.
Seller Financing
Business buyers are in a capital crunch. Financial institutions have tightened up their lending policies, making it difficult for inexperienced and undercapitalized entrepreneurs to buy drug and alcohol detection and testing businesses. As a result, buyers expect sellers to finance a significant portion of the sale. Although 100% seller financing isn't recommended, sellers are financing up to 70% of the sale price to close deals.
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