Selling a Business Advice
Selling an Industrial Equipment Rebuilding, Service, and Repair Business
We hear it all the time: 'This economy is a hostile environment for a business sale.' However, industrial equipment rebuilding, service, and repair businesses continue to sell at a brisk pace, regardless of the economy.
Business sellers are notorious for second-guessing themselves about the right time to put their companies up for sale.
If you're ready to move on, now is the right time to sell your industrial equipment rebuilding, service, and repair business.
Family Business Sale Tips
The idea of passing a business along to a family member sounds idyllic to many business owners. in reality, a family-based industrial equipment rebuilding, service, and repair business sale can be more complicated than selling to a stranger. Often, a sale to a family member creates fractures within the family. Whether you offer the family member special concessions or not, either the buyer or other family members may take offense. If possible, discuss a long-term, generational transition with the entire family and seek the advice of a professional consultant.
Working with a Professional Accountant
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. Brokers often advise their clients to have an accountant perform an audit of the business prior to sale. In certain instances, it may be appropriate to ask your accountant to vet the financials of prospective buyers, run credit checks or even structure the terms of a seller-financed deal.
Sale Preparation Timeframes
There are no effective shortcuts for selling an industrial equipment rebuilding, service, and repair 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. Additionally, prospective buyers usually request documentation that allows them to understand the business's daily workflows and operational strategy. Unless you have already started planning for your industrial equipment rebuilding, service, and repair business sale, it's going to take at least six months to prepare your business. A more likely scenario is that it will take more than a year to create the conditions necessary to receive the maximum sale price.
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