Exit Planning Techniques By Market
Selling a Fuel and Oil Filters Business
We hear it all the time: 'This economy is a hostile environment for a business sale.' However, fuel and oil filters businesses haven't heard the news and are reporting steady action on the business-for-sale market.
Like it or not, a fuel and oil filters business sale is a complicated affair, made even more difficult by the emotions associated with leaving a business you've poured your life into. In our experience, a common owner concern is how the sale will affect customers and employees.
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.
Timing the Market
Now may be the best time to sell a fuel and oil filters business. A depressed economy means lower interest rates; lower interest rates increase the number of investors willing to take a chance on fuel and oil filters businesses. When the economy recovers there will be more fuel and oil filters business buyers on the market, but higher interest rates could present challenges. Market conditions can be intimidating. But your larger concern should be whether or not your business is ready to be presented to qualified sale prospects.
Advantages of Hiring a Broker
A good broker can offer several benefits to business sellers. Right out of the gate, brokers know how to help their clients properly prepare their businesses for a sale. Second, a good business broker is a master at confidentiality locating fuel and oil filters business sale prospects and guiding sellers through negotiations. Typical brokerage rates (a.k.a. success fees) run 10% of the final price - an expense that is usually recouped through a higher sales price and less time on the market.
Workforce Concerns
As a business owner, you want to keep you employees informed about your plans; as a seller it's in your best interest to keep your employees in the dark for as long as possible. You're concerned about confidentiality, and rightfully so. However, the longer the selling process drags on, the more likely it is that rumors will begin to circulate throughout your workforce. Consider informing your key employees first, followed by the rest of your workforce later in the process. Above all else, it's imperative to encourage your workers to maintain a positive attitude and work ethic. If you're having trouble navigating the employee minefield, consult a business broker for advice.
Share this article
Additional Resources for Entrepreneurs