Niche Exit Planning Tactics
Selling a Waterworks Equipment and Supplies Business
It's a misconception that no one is buying waterworks equipment and supplies businesses these days. Savvy entrepreneurs see waterworks equipment and supplies business opportunities as a path to short-term profits and long-term growth. Although final sales prices vary, the best sales combine strategy and hard work to achieve desired outcomes.
It's a fact: Successful business sales take time.
The economy hasn't squashed the market for waterworks equipment and supplies businesses. Like always, unprofitable and poorly positioned businesses struggle to find buyers while sellers who have invested time and effort to prepare their sale are being rewarded in the marketplace.
Dealing with Buyers
Business sellers sometimes struggle to maintain a positive attitude when dealing with buyers. The questions waterworks equipment and supplies business ask during due diligence are designed to alleviate their concerns about the business and should be promptly addressed by the seller. Avoid answering buyer concerns with vague generalities. Instead, be as specific as possible, even if it means doing additional research before offering a response. If due diligence drags on too long, your broker may need to intervene.
Average Preparation Time
Preparing a waterworks equipment and supplies business sale takes time. Since buyers prefer to see evidence of future cash flow, you'll want to to strategically lock in cash flows and increase profits before you list the business. You'll also need to create financial reports, operations manuals, and other documents to create the perception of a turnkey waterworks equipment and supplies business operation. Since all of this takes time and effort, a waterworks equipment and supplies 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.
Hiring an Attorney
It's obvious that you're going to need to hire an attorney to finalize the sale of your waterworks equipment and supplies business. Tackling the legal nuances and tax ramifications of a sale without a first-rate business lawyer is an invitation for disaster. We recommend hiring an attorney early in the process to gain insights about the legal consequences of various sale outcomes.
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