Exit Planning Techniques By Market
Selling a Filtration Systems Business
The business-for-sale marketplace has experienced no shortage of uncertainty over the past several years. But filtration systems businesses continue to sell at a brisk pace, regardless of the economy.
Dire economic forecasts have forced many filtration systems business sellers into hibernation. Instead of listing their companies now, they're hanging back until they see signs of an economic recovery.
Success is a factor of preparation, execution and a keen eye for the market. As a business seller, you need to go into the process with the mental goal of presenting your business in the best possible light.
Realistic Expectations
For most owners, the hardest part of selling a filtration systems business is remaining objective. Your estimate of your company's worth is probably skewed by your emotions and your close, personal connection to the business. Although it may be a hard pill to swallow, you need to find a way to introduce objectivity into your sale. A business broker can be a valuable resource in right-sizing your expectations and preparing you for market realities.
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. Asset exclusions, retained ownership shares and long-term contracts with another of the seller's companies can also be leveraged to extract concessions from buyers.
Broker vs. No Broker
When selling a filtration systems business, you have two choices: Hire a broker to facilitate the sale or perform the sale unassisted. Is there a cost associated with hiring a broker? Sure - about 10% of the final sale prices. But a good broker will make selling your filtration systems business much less painful. You can also expect to receive a higher sales price for your business in a broker-assisted deal.
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