Selling a Company Advice
Selling a Used Contractors' Equipment and Supplies Business
Don't believe anyone who tells you it's easy to sell a used contractors' equipment and supplies business. A lot of things need to happen before you can successfully exit your business. But with a few tips, you can keep your shirt and your sanity in the sale of your business.
Dire economic forecasts have forced many used contractors' equipment and supplies business sellers into hibernation. Instead of listing their companies now, they're hanging back until they see signs of an economic recovery.
However, serious buyers also understand the value of a good used contractors' equipment and supplies business. So for used contractors' equipment and supplies business sellers, today's market is all about convincing buyers that the numbers make their companies worth the asking price.
Advantages of Hiring a Broker
Brokers give used contractors' equipment and supplies business sellers distinct advantages in the marketplace. Right out of the gate, brokers know how to help their clients properly prepare their businesses for a sale. More importantly, brokers have the ability to identify serious buyers and maintain confidentiality throughout the sale process. Typical brokerage rates (a.k.a. success fees) run 10% of the final price - an expense that is usually recouped through a higher sales price and less time on the market.
Laying the Groundwork
In addition to improving profitability and market share, planning the sale of your business will require you to think about how you will present your company to buyers. Professional business brokers understand buyers and know how to properly communicate a used contractors' equipment and supplies business to the marketplace. At a minimum, you'll want to position your business to receive the highest possible sale price, prepare a packet for prospective buyers and perform an initial appraisal before you put your used contractors' equipment and supplies business on the market.
Leveraging Seller Concessions
Seller concessions are becoming more commonplace in business-for-sale transactions. By far, seller financing is the most sought-after concession, especially in the current economic environment. Capital is scarce, causing new entrepreneurs to rely on sellers to finance at least part of the purchase price. Other common seller concessions include staying on the mentor the new owner, non-compete clauses, and working as a consultant to mitigate the impact of new ownership.
Share this article
Additional Resources for Entrepreneurs