Exit Planning Tips
Selling a Handyman Service
Although a handyman service may not be completely recession-proof, the best companies can survive nearly any storm. All it takes is a strategy to identify solid prospects and convert them to buyers.
You won't find any magic formulas for selling a handyman service, especially while the market is struggling to overcome the perceptions created by a down economy.
Fortunately for sellers, forward-thinking entrepreneurs continue to be attracted to handyman services that exhibit strong financials and potential for future growth.
What About Market Conditions?
No one plans to sell a handyman service in a down economy. So far, government intervention and promises that the economy is slowly recovering haven't been enough to alleviate many entrepreneur's fears. However, many business sellers don't realize that a full economic rebound can have devastating consequences, particularly if sellers who have waited to list their businesses suddenly create a glut in the business-for-sale marketplace. The simple truth is that the economy shouldn't dictate whether or not now is the right time to sell a handyman service. Your individual circumstances and personal goals are more influential factors in determining when it's time to put your business on the market.
Why Confidentiality Matters
Highly publicized handyman service sales are risky handyman servicesales. A low-key selling strategy is a low risk activity because you can control who does (and doesn't) know that your business is on the market. Eventually, word will leak out. When that happens, it can damage your standing with customers and vendors. Although it can be difficult, it's important to strike a balance between confidentiality and sale promotion. If confidentiality is important to you (and it should be), your best bet is to consult with a professional business broker about maintaining a confidential handyman service sale.
Professional Appraisals
Next to your broker, a skilled appraiser is the person most capable of adding value to the price of your handyman service. By hiring an appraiser to conduct a thorough appraisal of tangible and non-tangible assets prior to listing, you get a measure of the true worth of your business. Although the appraised value of your business may not be the same as the sales price, you gain valuable insight that can be used to your advantage during negotiations. Following the appraisal, you may choose to delay your sale until you can increase the value of assets and revenue.
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