Exit Planning Strategies
Selling a Valves and Fittings Repair Business
With the economy struggling to rebound, the shadow inventory of valves and fittings repair businesses in the business-for-sale marketplace seems to be rising. That could make this the perfect time to list a successful valves and fittings repair business
In any economy, there is a right way and a wrong way to sell a business.
Yet what many sellers don't appreciate is that a down economy can present the perfect opportunity to sell a valves and fittings repair business.
Selling to a Family Member
The idea of passing a business along to a family member sounds idyllic to many business owners. in reality, a family-based valves and fittings repair business sale can be more complicated than selling to a stranger. Often, a sale to a family member creates fractures within the family. If you refuse to discount the sales price or offer other concessions, it could create a rift with the buyer. But if you give in to the buyer's demands, you risk alienating family members who may feel the buyer is receiving an early inheritance. Although it may seem odd, a sale to a family member can take longer than a sale to a stranger because it may take time to work through family issues prior to closing.
What About Market Conditions?
No one plans to sell a valves and fittings repair business in a down economy. So far, government intervention and promises that the economy is slowly recovering haven't been enough to alleviate many entrepreneur's fears. Despite the risks, sellers need to be cognizant of the fact that there is a large volume of valves and fittings repair businesses waiting to be listed until the economy rebounds. When that happens, the buyers' market will become even stronger and have a negative impact on prices. So what's our point? The economy isn't the most important factor in the sale of your business. Instead, you should be focusing on making your valves and fittings repair business as attractive as possible so to buyers right now.
Handling Unexpected Outcomes
When you made the decision to sell your valves and fittings repair business, you had a specific set of outcomes in mind. But it's highly unlikely that the sale will meet all of your expectations, especially if your initial estimates were created without the benefit of a solid appraisal or market knowledge. Despite your best efforts, you need to prepare yourself for the possibility of receiving less than you expected from the sale of your valves and fittings repair business. If buyers don't seem to be willing to meet your expectations, consult with your broker to modify your strategy and market approach.
Share this article
Additional Resources for Entrepreneurs