How to Sell a Niche Market Business
Selling an Engineering Services Business
Few entrepreneurs relish the idea of selling a business in a struggling economy. Yet engineering services businesses continue to be sold at a brisk pace, outperforming the sales of many other types of businesses.
Selling a engineering services business? You'll need to be prepared to address a variety of challenges that are common in the business-for-sale marketplace.
There is no simple way to sell a business. But the most prepared engineering services business sellers are achieving fair market value and more for their companies through persistence and the application of sound selling techniques.
Sale Preparation Timeframes
It's critical to properly plan for the sale ofan engineering services business. For starters, the financials need to demonstrate a track record of profitability and growth. Next, the business will need to be documented in professional financial statements and manuals that facilitate the ownership transition. Since all of this takes time and effort, a engineering services business can rarely be ready for the marketplace in less than six months. If you can afford to wait, we recommend investing a few years in improving your business's financial position before you put it on the market.
Broker vs. No Broker
The decision of whether or not to hire a business broker should never be taken lightly. Business brokers typically charge a 10% "success fee" when they sell a business, but they also handle many of the hassles that are associated with selling an engineering services business. You can also expect to receive a higher sales price for your business in a broker-assisted deal.
Why Confidentiality Matters
Confidentiality determines risk in the business-for-sale marketplace. A low-key selling strategy is a low risk activity because you can control who does (and doesn't) know that your business is on the market. But if word leaks out to the wrong people, your competitors can use that information to steal business and damage your credibility. Although it can be difficult, it's important to strike a balance between confidentiality and sale promotion. Brokers and consultants can mitigate the risk by implementing confidential sale techniques.
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