Selling a Company Advice
Selling an Utility Location Services Business
Is the economy still a little shaky for a business sale? Sure it is. Yet utility location services businesses continue to sell at a brisk pace, regardless of the economy.
If you plan on selling your utility location services business quickly, prepare to be disappointed.
Despite the conventional wisdom, we believe current economic conditions are right for selling an utility location services business. Here's how to do it . . .
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 utility location services 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. Although it may seem odd, a sale to a family member can take longer than a sale to a stranger because it may take time to work through family issues prior to closing.
Average Preparation Time
There are no effective shortcuts for selling an utility location services 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 utility location services 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.
Sale Costs
In an utility location services business sale, pricing is based on a number of factors, including the costs incurred during the sale. Good brokerage takes a 10% success fee off the top of the final sale price. Professional consultations can also represent a significant expense during the course of an utility location services business sale. Furthermore, your time has value, so you may need to include a personal compensation consideration in your expense estimates.
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