Optimizing Business Exits
Selling a Records Destruction Business
There is a lot of confusion about the best way to sell a records destruction business even if the seller has previous business sales experience. More than ever before, it's important for sellers to know the tactics and techniques that are being used to maximize sales price and achieve desired sale outcomes.
An assortment of hurdles and obstacles stand between you and the successful sale of your records destruction business.
Qualified buyers are constantly looking for attractive records destruction businesses. Like always, unprofitable and poorly positioned businesses struggle to find buyers while sellers who have invested time and effort to prepare their sale are being rewarded in the marketplace.
Pre-Sale Checklist
There is a lot of work that needs to be done before you're ready to sell your records destruction business. Perhaps the most important pre-sale consideration is to right-size your expectations to the realities of the market. After you have consulted with a business broker to right size your expectations, you'll need to add several items to your checklist, including financial statement preparation, pre-sale appraisals, financial planning, market positioning and other tasks designed to communicate value to prospective buyers.
Buyer Concessions
Sellers aren't the only ones who can make concessions in a business sale. In many instances, sellers can request buyer concessions. Although this scenario frequently plays out around seller financed deals, it's possible to push for a higher sales price or other form of compensation if you agree to mentor the buyer for a specified period of time. Like seller concessions, buyer concessions should be addressed during negotiations, before the preparation of a Letter of Intent.
Should I Hire a Business Broker?
When selling a records destruction business, you have two choices: Hire a broker to facilitate the sale or perform the sale unassisted. Although brokerage fees can be substantial, the right broker can reduce the amount of time your records destruction business sits on the market. You can also expect to receive a higher sales price for your business in a broker-assisted deal.
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