Difficult trends in the nation’s economy can encourage business owners and investors to be open-minded to new opportunities. If you own a fire safety business, you might be thinking about selling it for the first time. When the future is unknown, having a secure amount of cash with which to provide for your family is appealing. But, you may be worried about getting a fair price when everyone is experiencing the same economic downturn.
The good news is that, while selling in a recession can be tricky, it is still possible to find a good buyer who will offer you a fair price. You just need to do a couple things to prove your business’s resilience, and you need to make sure you work with someone who has experience negotiating in tough times.
Let’s look closer at how to help your fire protection company stand out, even during a recession. And, let’s look at how to find the right partner to help you navigate the selling process.
Make Sure Your Financials Are in Order, and Highlight Good Performance
One of the most important things you can do when selling your fire safety business is to make sure your financials are in order. Buyers will be very interested in seeing your company’s financial history. If your records are messy or incomplete, it could reflect poorly on your business. Make sure to keep your financials up-to-date and in good order before putting your business on the market.
In addition to having complete and accurate financial records, you should also take the time to highlight your company’s good performance. If your business has weathered the recession better than most, make sure to point that out. You can use your financial records to back up your claims of good performance. This will show buyers that your fire safety business is a good investment, even during tough times.
If you can pinpoint times in your company’s history when you maintained consistent revenue, in spite of local or national economic hardships, that will give you an even stronger bargaining position. Proving that your business is needed and that your services are not cut from customer budgets the minute money gets tight will make investors feel more comfortable.
Tighten Up Any Weak Points in Your Fire Safety Business
Do you have service vehicles that are well past the point of needing to be replaced, or a team member who has been hurting customer relationships? Maybe there’s parts or equipment you know you can get at a better price, or something that needs to be changed in the way your field team’s schedules work. Whatever weak points you know your business has, now’s the time to address them.
The trick to selling during a recession is setting yourself apart from your competitors. If investors are limited in how many deals they are able to entertain through the financial downturn, you want to make sure your company can attract prospects.
While it may not be easy or cheap to fix some of these things, it will be worth it in the long run. Addressing these weak points will give your business a boost and make it more attractive to buyers. It will also reduce or remove any issues a buyer might use to lower his offer. And, while you’re still trying to find the right buyer, you’ll have the added advantage of running a business that is operating as it should!
Work with An Experienced Broker to Negotiate a Fair Price
One of the best ways to ensure you get a fair price for your fire safety business is to find an experienced business broker to help with the selling process. An experienced business broker will be able to help you put your best foot forward and negotiate on your behalf. They will also be able to find buyers who are a good fit for your company, and who are more likely to offer you a fair price.
During recessions, deals are approached with greater caution. Fire protection companies with loyal customers, proven financial success, and clear talent both in their field and sales teams will have clear value. But even so, the prospects in the market for your type of business may be harder to find. During downturns, people may feel more comfortable following leads from sources they worked with in the past.
This is where working with a fire and security business broker can make all the difference. A business broker with experience selling fire and life safety companies can introduce you to potential buyers who he has worked with in the past. Those buyers will feel more comfortable working with him, even during a recession, because they will know he represents good clients ready to make a deal.
As the seller, you will know the buyers your broker recommends are serious and qualified. You will be able to learn more about them and how their previous sales have gone. This will help you feel more comfortable selling your business during a recession. And, your broker will be there to ensure you get a fair price.
Over 30 Years of Experience as a Fire and Security Business Broker: Call Rory Today!
Selling in a recession doesn’t have to mean selling your fire safety business for less than it’s worth. With careful planning and the right help, you can get a fair price for your company.
If you haven’t been receiving the offers you had hoped for when selling your business, working with the right partner can be a game-changer.
Rory Russell has over 30 years of experience in the fire and security industry, and he has closed deals during some of the most challenging economic times. He knows how to help his clients put their businesses in the best possible position to sell, and he will fight to get you a fair price.
Contact him confidentially through our online form here or give him a call at 800-354-3863 today to get the conversation started.
