Sell a Business for the Best Price
Selling a Portable Floors Business
We hear from a lot of business owners who are timid about listing their portable floors business. Despite the mood of the market, we think there are still opportunities to receive a good price for your portable floors business. Here's what you need to know . . .
You won't find any magic formulas for selling a portable floors business, especially while the market is struggling to overcome the perceptions created by a down economy.
There is no simple way to sell a business. But the most prepared portable floors business sellers are achieving fair market value and more for their companies through persistence and the application of sound selling techniques.
Average Preparation Time
There are no effective shortcuts for selling a portable floors business. Since buyers prefer to see evidence of future cash flow, you'll want to to strategically lock in cash flows and increase profits before you list the business. Additionally, prospective buyers usually request documentation that allows them to understand the business's daily workflows and operational strategy. Unless you have already started planning for your portable floors business sale, it's going to take at least six months to prepare your business. However, to command the highest price, you'll probably need to spend one to two years preparing and positioning your business for buyers.
Professional Appraisals
There is no substitute for a qualified appraisal in the sale of your portable floors business. Armed with a professional appraisal, both you and your broker can enter the negotiation stage with confidence. If you're disappointed with the appraiser's estimate of your company's worth, you have the option of seeking a second opinion. However, it's more often the case that you will need to adjust your expectations of your business's value to buyers.
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.
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