Exit Planning Techniques By Market
Selling a Fire Sprinkler Systems Business
Selling a fire sprinkler systems business doesn't happen overnight. It takes a deliberate process to get top dollar for your company.
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.
If your exit strategy involves selling a fire sprinkler systems business now, you need to apply the right combination of preparation, strategy and common sense.
Legal Considerations
It's obvious that you're going to need to hire an attorney to finalize the sale of your fire sprinkler systems business. A good lawyer serves a variety of functions during the process. In addition to reviewing the letter of intent, sales contract, and other documents, your attorney should be capable of advising you about due diligence and the tax consequences of the sale. We recommend hiring an attorney early in the process to gain insights about the legal consequences of various sale outcomes.
Seller Concessions
In the current marketplace, seller concessions can make the difference between a business sale and a fire sprinkler systems business that languishes on the market for months or even years. In a down economy sellers become bankers; an unwillingness to finance at least part of the sale of a fire sprinkler systems business can translate into a dead deal. Traditional lenders and investors are gun shy - and that makes sellers a logical funding source for many buyers. If you are unwilling or unable to offer financing, be prepared to offer other types of concessions to close the deal.
Moving On
The decision to sell your fire sprinkler systems business can't be made without adequate consideration of what will happen after the sale. Although next steps may seem inconsequential, they actually play an important role in shaping the structure of the sale of your fire sprinkler systems business. In today's market, many buyers expect seller financing - a concession that might not be a possibility for sellers whose next step requires the entire proceeds at the time of the sale.
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