Sell a Business for the Best Price
Selling a Pipe and Boiler Covering Materials Business
Over the past few years, the pipe and boiler covering materials business industry has seen more than its share of fluctuations in business values. Many sellers have exited their companies under less-than-ideal circumstances. Yet it's still possible to achieve personal and professional goals when selling a pipe and boiler covering materials business during challenging economic times.
It's a fact: Successful business sales take time.
Many business owners don't know that pipe and boiler covering materials businesses are still a hot commodity, to the extent that sellers have properly prepared them for the marketplace.
Realistic Expectations
Objectivity is a rare commodity in a business sale. Your estimate of your company's worth is probably skewed by your emotions and your close, personal connection to the business. Although it may be a hard pill to swallow, you need to find a way to introduce objectivity into your sale. A business broker can be a valuable resource in right-sizing your expectations and preparing you for market realities.
Tips for Seller Financing
Business buyers are in a capital crunch. Thanks to more stringent commercial lending requirements, sellers have become de facto lenders, providing the financing buyers need to get their feet in the door. It's common for sellers to finance as much as 70% of the purchase price with a payoff period of four or five years, sometimes in the form of a balloon payment at the end of the repayment period.
Sale Costs
The calculation of your asking price should include a buffer to cover the expense of the sale process. Although they can significantly increase the final sale price, brokers typically receive a 10% commission. Professional consultations can also represent a significant expense during the course of a pipe and boiler covering materials business sale. Furthermore, your time has value, so you may need to include a personal compensation consideration in your expense estimates.
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