Advice on Niche Market Exit Planning
Selling a Commercial Tree Service Company
At first glance, an unstable economy would seem to be an unfriendly atmosphere for a tree service sale. But in reality, now may be the perfect time to sell a tree service.
If you listen to many entrepreneurs, there never seems to be a good time to put a small business on the market.
At Gaebler, we're seeing tree service sellers succeed by applying sound sales principles combined with a refusal to be intimidated by a down economy.
Average Timeframes
Hoping for a quick tree service sale? You may be disappointed. The amount of time your business will be on the market depends on how aggressively it is priced and marketed. Before you can list your tree service, you'll need to invest as much as a year in preparing it for prospective buyers. Even though it's conceivable that an attractive opportunity could sell in weeks, an immediate flood of offers could indicate that the business is underpriced.
Selling a Tree Service to an Employee
Employee sales have pros and cons. A key employee may seem like a natural sales prospect. Since the worker already knows the ins and outs of the business, due diligence should be a breeze, not to mention the fact that you won't have to wait months or years for the right buyer to emerge on the open marketplace. Yet most employees lack the means to buy their employer's business at or near the asking price. Seller financing is one way to get around the capital deficit of an employee-based tree service sale, as long as you are willing to vet the employee's credit worthiness the same as any other buyer.
Working with a Professional Accountant
Accountants lay the financial groundwork for a business sale. Before your tree service goes on the market, you should sit down with your accountant to clarify your financial goals and the tax consequences of a sale. Brokers often advise their clients to have an accountant perform an audit of the business prior to sale. With seller financing becoming common, professional accountants are playing a more central role in negotiations and buyer qualification.
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