Optimizing Business Exits
Selling a Radiant Heating and Cooling Business
Over the past few years, the radiant heating and cooling business marketplace has been a shaky environment for sellers. 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 radiant heating and cooling business in the current economic environment.
The radiant heating and cooling business-for-sale marketplace is a nuanced environment, full of pitfalls for sellers who aren't prepared for its demands.
Undaunted by economic conditions, many radiant heating and cooling business sellers are achieving their sale goals through deliberate sale strategies.
Timing the Market
Now may be the best time to sell a radiant heating and cooling business. A depressed economy means lower interest rates; lower interest rates increase the number of investors willing to take a chance on radiant heating and cooling businesses. As the interest rates rise, it will be more difficult for buyers to make the numbers work in their favor. So we see market timing as a concern that can be easily mitigated by applying fundamental sales strategies and adequately preparing your company for buyers.
Working with Appraisers
An experienced appraiser is part and parcel of a successful radiant heating and cooling business sale. Leading industry appraisers equip sellers with a value gauge that can be accessed during negotiations. Following the appraisal, you may choose to delay your sale until you can increase the value of assets and revenue.
Leveraging Seller Concessions
It's becoming more difficult to sell a radiant heating and cooling business without considering seller concessions. By far, seller financing is the most sought-after concession, especially in the current economic environment. Traditional lenders and investors are gun shy - and that makes sellers a logical funding source for many buyers. As an alternative, clearly state that seller financing is not an option and consider offering other concessions to see the sale through to its completion.
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