Exit Planning Advice
Selling a Kitchen and Bathroom Remodeling Business
There are few things as intimidating as selling a business in a sluggish economy. Although it's going to take some work, there is a good chance you can still sell your company at or even above fair market value.
Are most buyers timid about buying a kitchen and bathroom remodeling business in today's economic environment? You bet.
Whether you do the work or function as a general contractor, kitchen and bathroom remodeling can be a lucrative and satisfying entrepreneurial venture.
Many business owners don't know that kitchen and bathroom remodeling businesses are still a hot commodity, to the extent that sellers have properly prepared them for the marketplace.
Working with Accountants
Accountants lay the financial groundwork for a business sale. Before your kitchen and bathroom remodeling business goes on the market, you should sit down with your accountant to clarify your financial goals and the tax consequences of a sale. Brokers often advise their clients to have an accountant perform an audit of the business prior to sale. With seller financing becoming common, professional accountants are playing a more central role in negotiations and buyer qualification.
Average Timeframes
Hoping for a quick kitchen and bathroom remodeling business sale? You may be disappointed. Although asking price and other factors contribute to sale time, it's difficult to predict how long your business will be on the market before you locate the right buyer. To adequately prepare your business listing, plan on spending six months to a year prior to listing. Even though it's conceivable that an attractive opportunity could sell in weeks, an immediate flood of offers could indicate that the business is underpriced.
Leveraging Seller Concessions
It's becoming more difficult to sell a kitchen and bathroom remodeling business without considering seller concessions. By far, seller financing is the most sought-after concession, especially in the current economic environment. Capital is scarce, causing new entrepreneurs to rely on sellers to finance at least part of the purchase price. If you are unwilling or unable to offer financing, be prepared to offer other types of concessions to close the deal.
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