Sell a Business Tips
Selling a Scale Rental Business
The business-for-sale marketplace has experienced no shortage of uncertainty over the past several years. But scale rental businesses haven't heard the news and are reporting steady action on the business-for-sale market.
Business sellers are notorious for second-guessing themselves about the right time to put their companies up for sale.
In our opinion, that kind of thinking doesn't make sense. In fact, this might be the perfect time to sell a scale rental business. Here's how to do it . . .
Broker vs. No Broker
When selling a scale rental business, you have two choices: Hire a broker to facilitate the sale or perform the sale unassisted. Business brokers typically charge a 10% "success fee" when they sell a business, but they also handle many of the hassles that are associated with selling a scale rental business. You can also expect to receive a higher sales price for your business in a broker-assisted deal.
When to End Negotiations
If the devil is in the details, the negotiation stage of a scale rental business sale is the devil's playground. But sooner or later, someone needs to bring negotiations to a close. Unfortunately, that responsibility often falls on the seller. In a scale rental business sale, a stalled negotiation can be an indication that the deal is dead. At this point in the process, an awareness of negotiation parameters really pays off. If the buyer is unwilling to accept your minimum demands, it's time to end negotiations and move on to the next prospect.
Timing the Market
Now may be the best time to sell a scale rental business. A depressed economy means lower interest rates; lower interest rates increase the number of investors willing to take a chance on scale rental 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.
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