Exit Planning Tips
Selling a Home Water Filtration and Purification Equipment Business
Looking for shortcuts? You won't find them when you sell a home water filtration and purification equipment business. In this industry, a business sale takes time, effort and dedication. But with a few tips, you can keep your shirt and your sanity in the sale of your business.
Business sellers are notorious for second-guessing themselves about the right time to put their companies up for sale.
Many business owners don't know that home water filtration and purification equipment businesses are still a hot commodity, to the extent that sellers have properly prepared them for the marketplace.
Turning the Tables: 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. Like seller concessions, buyer concessions should be addressed during negotiations, before the preparation of a Letter of Intent.
Advantages of Hiring a Broker
A good broker can offer several benefits to business sellers. First-rate brokers are extremely skilled at communicating your company's strengths to prospective buyers. More importantly, brokers have the ability to identify serious buyers and maintain confidentiality throughout the sale process. 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.
Timing Your home water filtration and purification equipment business Sale
When is it the right time to sell your home water filtration and purification equipment business? If you're asking the question, now may be the time to put your business on the market. There are a lot of naysayers out there advising home water filtration and purification equipment business sellers to put their plans on hold until the economy fully rebounds. At Gaebler, we have a much more optimistic view of your chances in the home water filtration and purification equipment business-for-sale market. With so many sellers holding back, there isn't a lot of inventory out there and you may be able to get a great price for your practice depending on how well you prepare the business and your ability to execute your sale strategy.
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