Optimizing Business Exits
Selling a Refinery Equipment Business
No one said selling your business in a depressed economy would be easy. Fortunately, a refinery equipment business sale isn't as scary as it seems.
Most business sellers are interested in disposing of their businesses as quickly as possible. But that's not how a refinery equipment business sale works.
Most refinery equipment businesses are good business opportunities, a fact that is not going unnoticed by today's discerning buyers.
Average Preparation Time
There are no effective shortcuts for selling a refinery equipment 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. Next, the business will need to be documented in professional financial statements and manuals that facilitate the ownership transition. Since all of this takes time and effort, a refinery equipment business can rarely be ready for the marketplace in less than six months. A more likely scenario is that it will take more than a year to create the conditions necessary to receive the maximum sale price.
The Best Person to Sell Your Refinery Equipment Business
An unassisted business sale is a double-edged sword. Without a doubt, you have the most at stake in the outcome of your sale. That makes you the most passionate advocate for your refinery equipment business in the business-for-sale marketplace. The problem is that your passion for your business can also sabotage your sale. Nearly all sellers have an inflated sense of their company's value. At a minimum, conduct an independent appraisal of the refinery equipment business to gain an objective sense of fair market value.
How to Skillfully Address Buyer Concerns
It's a common scenario: in an effort to perform a thorough due diligence process, buyers flood refinery equipment business sellers with questions and requests, often to the point of becoming a nuisance. It's completely normal for refinery equipment business sellers to be asked pointed questions during due diligence. Avoid answering buyer concerns with vague generalities. Instead, be as specific as possible, even if it means doing additional research before offering a response. If due diligence drags on too long, your broker may need to intervene.
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