Profitable Niche Market Exit Plans
Selling an Oil Field Chemicals Business
Owning an oil field chemicals business hasn't always been a bed of roses, but it's been worth the effort. Now the trick is to convince cautious buyers that your operation is worth the asking price.
It's a fact: Successful business sales take time.
There are still plenty of oil field chemicals business buyers looking for opportunities that present well in the marketplace.
Sale Preparation Timeframes
There are no effective shortcuts for selling an oil field chemicals 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. 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 oil field chemicals 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.
Identifying Serious Buyers
Unfortunately, many of the prospects you will encounter aren't serious buyers. As a seller, it's important to separate the tire kickers from the serious buyers as soon as possible. Each tire kicker is an investment of time and energy that could be poured into finding a more qualified prospect. Good business brokers are adept at separating serious buyers from the rest of the pack. Never provide detailed information about your oil field chemicals business until the prospect has been qualified as a serious buyer.
Legal Considerations
It pays to invest in first-rate legal counsel when you sell an oil field chemicals business. Competent legal counsel ensures that the sale documents are in proper order. Furthermore, a good lawyers provides the counsel necessary to navigate the tax and liability issues that surround a business sale. In some cases, an attorney may also provide assistance in securing long-term leases or vendor contracts to make your oil field chemicals business more attractive to buyers. If you don't know an attorney with experience in the business-for-sale market, ask your broker for a referral.
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