If you are a supplier to the construction industry and are thinking of selling your business, there are various aspects of the business sale that you need to plan for. Some business owners plan several years ahead to ensure their organisation is running as they would like at the time of the sale, with no glitches or issues that could potentially affect its value.
Alternatively, you might have incorporated an exit strategy into your original business plan, and are now ready to execute the final stages of this. When selling any business, however, obtaining advice from professional business sales brokers experienced in your sector is an important consideration given the detailed knowledge and expertise they offer.
Selling My Business has vast experience in the construction supply sector and can provide the expert assistance you need, ensuring that you deal with industry-specific challenges and other problems as effectively as possible.
Key influencers for selling your business may be on a personal level, such as retirement, entering into a new venture, or a wish to return to employment. On the other hand, the market conditions might suggest it is the right time to sell.
Whatever the reason for placing your business on the market, you can optimise the potential of your business sale in a number of ways. These include:
Selling My Business can provide a fair and accurate professional valuation for your business. It is likely that your construction suppliers company will be valued using EBIDTA, which is Earnings Before Interest, Depreciation, Tax and Amortisation.
A valuation for your business is then arrived at using an agreed multiplier, but there are considerations that extend beyond EBIDTA. The value of the goodwill you have built up, as well as your brand reputation and other key factors such as physical assets owned by the company, also need to be incorporated into the final valuation.
We can apply our extensive knowledge and experience of selling construction suppliers businesses throughout the process, to ensure we arrive at a valuation that is not only accurate, but fairly reflects it future potential for a purchaser.
So what are some of the issues that might affect the sale of your business?
Meeting the key dates and deadlines set by your customers is a fundamental part of your success as a construction supplier business. Interested parties will look at the effectiveness of your systems and processes in this respect - the potential for any improvements to be made and sales to increase if they do make the purchase.
Construction suppliers have traditionally been bricks and mortar businesses, and it is possible that you have not yet made the investment to move your business online. If builders and contractors are able to order online from existing or new competitors, it could represent a potential risk for your purchaser in the future, and possibly devalue your company.
The needs of your customers are changing, and no longer are solely manual practices and procedures sufficient to combat emerging new competition. If you have not invested in new technology to make your business more efficient - speeding up processing and invoicing times, for example - it can impact the ultimate selling price.
For more information on how to sell a construction suppliers business, please contact our expert team at Selling My Business. We can provide the advice and support you need, and will ensure you consider all the relevant issues that could affect its value and a successful sale.
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