Niche Exit Planning Strategies
Selling a Dry Well Contractors Business
You've learned a lot during your tenure as a dry well contractors business owner. The next step is to position your business for the demands of the business-for-sale marketplace.
Selling a dry well contractors business? You'll need to be prepared to address a variety of challenges that are common in the business-for-sale marketplace.
The economy hasn't squashed the market for dry well contractors businesses. Like always, unprofitable and poorly positioned businesses struggle to find buyers while sellers who have invested time and effort to prepare their sale are being rewarded in the marketplace.
Valuation Methods
Professional appraisers can use three methods to determine the value ofa dry well contractors business: The income method, the asset method and the market method. The income method determines value based on the amount of income the business is expected to generate. The asset method, on the other hand, is based on the value of tangible and non-tangible assets (e.g. brands and trademarks). In many sales, the most accurate valuation comes from the market method which determines value based on the recent sales of similar businesses. As a safeguard, consider conducting appraisals using variations of multiple appraisal methods. To drive up your sale price, position your dry well contractors business by improving variables like assets, revenue and profitability during the years leading up to a sale.
Promoting a dry well contractors business Sale
The best dry well contractors business sales listings are intentionally promoted to the right prospects. But if you think advertising your dry well contractors business will be the same as running a product promotion, think again. Multiple factors complicate business-for-sale advertising, not the least of which is the fact that you don't want your competition to know that your company is on the market. If sale information leaks out, competitors can use it to steal customers and circulate negative messages about your business throughout the industry. Business brokers are skilled at publicizing dry well contractors business sales while maintaining the confidentiality that is critical to your business.
Working with Accountants
Accountants lay the financial groundwork for a business sale. From a seller perspective, an accountant can offer personal financial assistance, especially when it comes to handling the disposition of sale proceeds. Brokers often advise their clients to have an accountant perform an audit of the business prior to sale. In certain instances, it may be appropriate to ask your accountant to vet the financials of prospective buyers, run credit checks or even structure the terms of a seller-financed deal.
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