Niche Exit Planning Tactics
Selling a Wall Coatings and Finishes Business
Selling a wall coatings and finishes business doesn't happen overnight. It takes a deliberate process to get top dollar for your company.
You're optimistic about the economy and so are we. Now the challenge is to convert business buyers who may have a more skeptical outlook.
Fortunately for sellers, forward-thinking entrepreneurs continue to be attracted to wall coatings and finishes businesses that exhibit strong financials and potential for future growth.
Buyer Identification
It's difficult to predict where the buyer of your wall coatings and finishes business will come from. Avoid pigeon-holing your search to a single buyer category. Although it's helpful to target promotional tactics to likely buyers, allow for some exposure to the broader market. Sellers should also recognize the value of promoting their sale in trusted business networks, carefully balancing the need for confidentiality with the promotional potential of their contact base.
Understanding Market Timing
Now may be the best time to sell a wall coatings and finishes business. A depressed economy means lower interest rates; lower interest rates increase the number of investors willing to take a chance on wall coatings and finishes businesses. As the interest rates rise, it will be more difficult for buyers to make the numbers work in their favor. So we see market timing as a concern that can be easily mitigated by applying fundamental sales strategies and adequately preparing your company for buyers.
Sale Documents
We run into a lot of wall coatings and finishes business sellers who intend to wait until the final contract to negotiate details. Big mistake. With few exceptions, sale structure is hammered out early, in the Letter of Intent . The price described in the Letter of Intent may fluctuate based on information that is revealed during due diligence, but the inclusion of new requirements in the final contract could be a deal killer. For sellers, that makes a close review of the Letter of Intent more than a formality - it's a critical juncture on the path to closing.
Share this article
Additional Resources for Entrepreneurs