Exit Planning Tips
Selling a Home Improvement and Maintenance Business
Business sellers have diverse personal and professional goals for the sale of their companies. But no matter what you expect from the sale of your home improvement and maintenance business, it's in your best interest to maximize the sales price through the application of proven sales techniques.
Business buyers face their own set of frustrations and complications. Although there are plenty of entrepreneurs who want to buy a home improvement and maintenance business, capital restrictions are holding them back.
But at Gaebler, we see home improvement and maintenance businesses still selling at a brisk pace. Like always, unprofitable and poorly positioned businesses struggle to find buyers while sellers who have invested time and effort to prepare their sale are being rewarded in the marketplace.
Buyer Concessions
Most home improvement and maintenance business sellers realize they will need to offer concessions to sell their businesses. But for every concession you grant, there may be an opportunity to obtain a concession from the buyer. Although this scenario frequently plays out around seller financed deals, it's possible to push for a higher sales price or other form of compensation if you agree to mentor the buyer for a specified period of time. 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.
Adjusting Expectations
Every business seller dreams of a fast sale and a fat payday. However, no one told the marketplace about your expectations. The outcome of your sale will be determined by market forces - not by your personal circumstances or desires. Despite your best efforts, you need to prepare yourself for the possibility of receiving less than you expected from the sale of your home improvement and maintenance business. If price is the most important outcome, you may need to agree to seller financing or other concessions. If a fast sale is the highest priority, you may need to lower the asking price to quickly capture the attention of the marketplace.
What to Expect in a Home Improvement & Maintenance Business Sale
It's impossible to predict the emotional highs and lows you will experience during the sale of your home improvement and maintenance business. Given your personal investment, you may also experience disappointment in the market's assessment of your company's value. Although it isn't easy, you can mitigate the emotional impact of a home improvement and maintenance business sale by setting realistic expectations before you list your business.
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