Advice on Niche Market Exit Planning
Selling a Timber Framing and Structures Business
With the economy limping along, many timber framing and structures business owners are hesitant to put their businesses on the market. At Gaebler, we think it's a great time to sell a timber framing and structures business. Here's why . . ..
Cutting corners never pays off, especially in the sale of a timber framing and structures business.
In our opinion, that kind of thinking doesn't make sense. In fact, this might be the perfect time to sell a timber framing and structures business. Here's how to do it . . .
Sale Preparation Timeframes
It's critical to properly plan for the sale ofa timber framing and structures business. Buyers want to see growth trends, healthy profits and other variables that increase the likelihood of long-term success. 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 timber framing and structures 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.
Sale Documents
A basic understanding of legal requirements is foundational for a successful business sale. Despite the confusion that exists among many sellers, the essentials of the sale are described in the Letter of Intent, a seminal document that is created prior to due diligence . If you are seeking buyer concessions, the time to address them is before the Letter of Intent is drafted. Never sign a Letter of Intent until it has been properly reviewed by your attorney and you are in complete agreement with everything it contains.
Workforce Concerns
Business sellers walk a fine line when it comes to preparing their employees for a sale. The more people who know that the business is on the market, the riskier the sale becomes. If you keep your employees out of the loop too long, it's inevitable that misinformation will filter throughout your workplace. So at some point you will have to resign yourself to the idea of telling some or all of your employees that you have listed the timber framing and structures business on the market. Maintain a positive tone in your conversations and answer your employees questions as completely as you can without jeopardizing the sale.
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