How to Sell a Niche Market Business
Selling an Electric Control Equipment Business
We hear it all the time: 'This economy is a hostile environment for a business sale.' However, electric control equipment businesses haven't been deterred. In fact, we think this economy is a ripe environment for a electric control equipment business sale.
The economy isn't the only thing that is uncertain these days. So are electric control equipment business buyers, many of whom are waiting to pull the trigger on their next acquisition.
In our opinion, that kind of thinking doesn't make sense. In fact, this might be the perfect time to sell an electric control equipment business. We'll tell you what you need to know to achieve a successful sale outcome
Average Preparation Time
There are no effective shortcuts for selling an electric control equipment business. 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 electric control equipment business operation. Since all of this takes time and effort, a electric control equipment business can rarely be ready for the marketplace in less than six months. However, to command the highest price, you'll probably need to spend one to two years preparing and positioning your business for buyers.
Working with Accountants
Accountants lay the financial groundwork for a business sale. From a seller perspective, an accountant can offer personal financial assistance, especially when it comes to handling the disposition of sale proceeds. A professional audit can ease buyer concerns and amp up the value of your financial presentation. With seller financing becoming common, professional accountants are playing a more central role in negotiations and buyer qualification.
Dealing with Tire Kickers
Unfortunately, many of the prospects you will encounter aren't serious buyers. Selling a business is hard enough. You can't afford to waste time on prospects that have no chance of turning their interest into an actual purchase. Your business broker can offer insights about how to quickly spot tire kickers. Never provide detailed information about your electric control equipment business until the prospect has been qualified as a serious buyer.
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