Advice on Niche Market Exit Planning
Selling a Tank Abandonment Service
The decision to sell your tank abandonment service isn't something that should be taken lightly, especially these days. If a business exit is on the horizon, you'll want to check out our suggestions for staying ahead of the market.
The tank abandonment service-for-sale marketplace is a nuanced environment, full of pitfalls for sellers who aren't prepared for its demands.
At Gaebler, we think waiting for the economy to rebound is a mistake for many business owners. Selling a tank abandonment service isn't easy, but we believe sellers can achieve their goals in any economic environment.
Broker vs. No Broker
The decision of whether or not to hire a business broker should never be taken lightly. Is there a cost associated with hiring a broker? Sure - about 10% of the final sale prices. But a good broker will make selling your tank abandonment service much less painful. You can also expect to receive a higher sales price for your business in a broker-assisted deal.
Average Preparation Time
There are no effective shortcuts for selling a tank abandonment service. 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. Additionally, prospective buyers usually request documentation that allows them to understand the business's daily workflows and operational strategy. At a minimum, plan on spending six months preparing your tank abandonment service for the marketplace. If you can afford to wait, we recommend investing a few years in improving your business's financial position before you put it on the market.
Sweetening the Deal
Today's tank abandonment service buyers expect sellers to offer concessions to persuade them to close the deal. Concessions can consist of non-cash as well as cash incentives. When you've reached your limit on price, consider offering non-cash concessions to encourage a commitment from the buyer. In the current economy, seller financing is becoming common in tank abandonment service sales. If the prospect is inexperienced or lacks credentials in the industry, you can also offer to stay with the business for a specified period of time to help the new owner get on his feet and introduce him to your network of industry contacts.
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