Smart Exit Planning Strategies for Niche Markets
Selling a Gas Appliance Dealership
A good business is about more than dollars and sense. To make your gas appliance dealership what it is today, you've had to fully invest yourself in its success. But the hard work isn't done yet. Before you can make a graceful exit, you will have to invest yourself in your business sale.
A business exit is always a trying experience. But when you need to sell your gas appliance dealership in a depressed economy, the challenges can seem insurmountable.
There is no simple way to sell a business. But the most prepared gas appliance dealership sellers are achieving fair market value and more for their companies through persistence and the application of sound selling techniques.
Buyer Concessions
Sellers aren't the only ones who can make concessions in a business sale. In many instances, sellers can request buyer concessions. For example, if the buyer needs seller financing, you can leverage a five-year loan to push for a higher sales price. Although you won't see all of the proceeds upfront, you'll earn interest on the balance and realize a higher price than you would in an all cash deal. 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.
Leveraging Industry Connections
There are a lot of different places to look for gas appliance dealership buyers. Online business-for-sale databases like BizBuySell.com offer convenient resources for sellers interested in promoting their business to a broad prospect base. For more targeted lead generation, consider tapping into your network of industry contacts. Time and time again, successful gas appliance dealership sales emerge from relationships within the industry. The challenge is to leverage industry connections while keeping knowledge of the sale hidden from your competitors. Use good sense in restricting the flow of information within the industry and focusing your efforts toward trusted industry allies.
Before You Sell
There is a lot of work that needs to be done before you're ready to sell your gas appliance dealership. The first item on your checklist should be a reality check -- if you plan to sell your business for top dollar in just a few short months, you need to adjust your expectations%However, your first priority should be to set realistic expectations for the selling process and its eventual outcome. After you have consulted with a business broker to right size your expectations, you'll need to add several items to your checklist, including financial statement preparation, pre-sale appraisals, financial planning, market positioning and other tasks designed to communicate value to prospective buyers.
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