Exit Planning Tips
Selling a Heating and Air Conditioning Contractors Business
A good business is about more than dollars and sense. To make your heating and air conditioning contractors business 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.
You won't find any magic formulas for selling a heating and air conditioning contractors business, especially while the market is struggling to overcome the perceptions created by a down economy.
Yet what many sellers don't appreciate is that a down economy can present the perfect opportunity to sell a heating and air conditioning contractors business.
Valuation Methods
Professional appraisers can use three methods to determine the value ofa heating and air conditioning contractors business: The income method, the asset method and the market method. While the income method uses anticipated revenues as a value basis, the asset method focuses on the company's capital, real estate and intellectual assets. Finally, the market method determines the worth of your heating and air conditioning contractors business based on the sales of similar businesses in your geographic area. A good appraiser will often use multiple valuation methods to arrive at a reasonable estimate. Sellers should take note of the fact that all three valuation methods reward businesses that takes steps to increase assets and income.
Preparing Your Heating & Air Conditioning Contractors Business for Sale
The outcome of a business sale is largely determined prior to a market listing. Profitable heating and air conditioning contractors business sales begin with a comprehensive strategy that incorporates planning, preparation and market positioning. Branding, market positioning, and revenue growth take time, but they directly influence the price your heating and air conditioning contractors business will command in the marketplace. But your efforts to improve your company's position and profitability will only be effective if you invest similar effort into the preparation of accurate financial statements for buyers.
Legal Considerations
There is no way around the requirement to hire professional legal assistance when you sell your heating and air conditioning contractors business. Competent legal counsel ensures that the sale documents are in proper order. Furthermore, a good lawyers provides the counsel necessary to navigate the tax and liability issues that surround a business sale. We recommend hiring an attorney early in the process to gain insights about the legal consequences of various sale outcomes.
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