Optimizing Business Exits
Selling a Residential Architecture Firm
The business-for-sale marketplace has experienced no shortage of uncertainty over the past several years. But residential architecture firms haven't heard the news and are reporting steady action on the business-for-sale market.
You're optimistic about the economy and so are we. Now the challenge is to convert business buyers who may have a more skeptical outlook.
The business-for-sale market is extremely dynamic. So if you're waiting for the perfect market conditions to sell your residential architecture firm, you could be waiting a while. If your business is ready to be sold, the time to sell is now. To improve sale outcomes, you will simply need to tailor your residential architecture firm to today's buyers.
Preparing for What's Next
The decision to sell your residential architecture firm can't be made without adequate consideration of what will happen after the sale. Although next steps may seem inconsequential, they actually play an important role in shaping the structure of the sale of your residential architecture firm. For example, seller financing can be an extremely valuable concession, especially in the current economy. But if you need all of the proceeds of the sale upfront, seller financing is off the table and you'll need to find a different way to make your residential architecture firm attractive to buyers.
Leveraging Industry Connections
Today's residential architecture firm buyers can be found in a variety of locations. To advertise your sale to the widest possible audience, consider a listing on BizBuySell.com or other top online business-for-sale listing sites. For more targeted lead generation, consider tapping into your network of industry contacts. When leveraging industry relationships for sales prospects, you'll need to be cognizant of the potential for competitors to use knowledge of your sale against you in the marketplace. Use good sense in restricting the flow of information within the industry and focusing your efforts toward trusted industry allies.
Seller Financing
Capital is hard to come by these days. Banks and other lending institutions aren't eager to lend to unproven and undercapitalized residential architecture firm buyers regardless of the business's potential. Rather than abandon their plans entirely, many buyers are pursuing finance concessions from sellers. Although 100% seller financing isn't recommended, sellers are financing up to 70% of the sale price to close deals.
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