Optimizing Business Exits
Selling a Range Hoods and Canopies Business
You've learned a lot during your tenure as a range hoods and canopies business owner. Before you walk away, you have one more challenge to overcome: A successful and profitable business sale.
Economic data is scary stuff for small business owners. But quarterly data dumps don't impact range hoods and canopies business sales nearly as much as sale strategy.
Despite the conventional wisdom, we believe current economic conditions are right for selling a range hoods and canopies business. We'll tell you what you need to know to achieve a successful sale outcome
Equipment and Inventory Concerns
It's incumbent on buyers to commission their own appraisal of your range hoods and canopies business's real assets. Most sellers, however, conduct a pre-sale appraisal to gain an accurate gauge of asset value prior to negotiations. A professional appraisal is a necessity because it gives you the information you need to negotiate a sale price. During your appraisal process, you should also note the condition of your assets. Cost-effective repairs can then be made before your list your range hoods and canopies business.
Timing the Market
Worried about timing? Believe it or not, this could be an advantageous time to put a range hoods and canopies business up for sale. A depressed economy means lower interest rates; lower interest rates increase the number of investors willing to take a chance on range hoods and canopies 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.
Sale Costs
The calculation of your asking price should include a buffer to cover the expense of the sale process. Good brokerage takes a 10% success fee off the top of the final sale price. Professional consultations can also represent a significant expense during the course of a range hoods and canopies 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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