Selling a Business Advice
Selling an Industrial Maintenance Contractors Business
With the economy limping along, many industrial maintenance contractors business owners are hesitant to put their businesses on the market. Don't be deterred by economic uncertainty. There are plenty of reasons why this is the right time to put your industrial maintenance contractors business on the market.
Like it or not, an industrial maintenance contractors business sale is a complicated affair, made even more difficult by the emotions associated with leaving a business you've poured your life into. In our experience, a common owner concern is how the sale will affect customers and employees.
Too often industrial maintenance contractors business owners fail to receive fair market value for their businesses. With the right strategy, your sale doesn't have to end that way.
Selling an Industrial Maintenance Contractors Business to an Employee
There are both benefits and drawbacks to selling an industrial maintenance contractors business to an employee. There are some perks to selling the business in-house. If you need to sell quickly, the timeframe is condensed in an employee sale because you don't need to track down a buyer. Yet most employees lack the means to buy their employer's business at or near the asking price. Seller financing is one way to get around the capital deficit of an employee-based industrial maintenance contractors business sale, as long as you are willing to vet the employee's credit worthiness the same as any other buyer.
Realistic Expectations
Emotions run high during the sale of an industrial maintenance contractors business. Sellers typically overvalue their companies compared to the rest of the marketplace. Although it may be a hard pill to swallow, you need to find a way to introduce objectivity into your sale. Consider recruiting a team of objective professionals to help manage your expectations as you prepare and negotiate the sale of your business.
Working with Appraisers
An experienced appraiser is part and parcel of a successful industrial maintenance contractors business sale. Leading industry appraisers equip sellers with a value gauge that can be accessed during negotiations. Even though you may disagree with the appraiser's value estimates, it's important to give your appraiser the information and independence he needs to present an objective opinion. To ensure accuracy, ask your broker to provide references for appraisers with industry experience.
Share this article
Additional Resources for Entrepreneurs