Selling Your Kitchen and Bath Installation Business
With the housing market changing in many different areas and prices on the rise, kitchen and bath remodels have become a much more common upgrade to homes. Whether a homeowner is getting ready to sell or is just improving their existing space to make it more comfortable, often they start a remodeling project with the rooms where they spend the most time.
This means that the kitchen and bath installation business is quite profitable, and if you own that kind of business in northern California, now might be a great time to sell. But before you do, there are some things you should know, and some simple steps you need to take.
Get Things Flowing
Is your business ready to sell? You might think so, especially if you are turning a profit, but you have to show that to a buyer and make sure they can see that your business is stable or better yet, growing.
How do you do that? It is about more than just showing you have a profit and revealing your current customer list. If you are like other small business owners, you probably have your books set up for the maximum tax advantage. However, this does not always reveal your true earning potential.
This means at some point you need to recast your books or have your accountant do it for you. Recasting your books shows your true income potential, and makes it easier for a buyer to do their due diligence.
It is also important that you are selling at a time when your business is profitable, at least if you want to get the best price for your business. Sometimes, it is a good idea to grow your business for a little while before you sell.
When you do a job, once you have looked at and bid the kitchen or bath installation and have the job, you need to do some setup, right? The same is true when you are selling a business. You need to set up the sale and select the team who will actually do the work.
That team includes you because you know your business better than anyone else does. However, you don’t want to do everything yourself, because you need to be free to run your business and keep it booming. How do you do that?
You assemble a team. Often this starts with a business broker, someone who knows the industry and how to navigate all of the parts of a successful sale. It will also include accountants, lawyers, and tax professionals who will help you and the buyer understand the best structure for the sale and the tax implications of each. This team will help you find the right buyer at the right time for your business. Are you ready? Is everything you need in place?
Once you have your business ready to sell and have selected the right team, it is time to put your business on the market. This is where the help you have selected, especially your business broker, comes in. It is time to actually sell your business.
While you may still be working with customers in the background, there will be a lot of other things going on. Buyers will be doing due diligence, and this may mean you running reports for them and answering very specific questions.
Of course, your team will field whatever they can, and they may ask you to provide them with a great deal of this information up front. The more work you can leave to your team, the more energy you will be able to concentrate on running your business, which is the most important role in your process. It will take time for the business sale to close, and you can’t let your profits slide during that time.
There will also be the transition for you to handle, form you as the primary business owner to someone else. This will mean changes to both management and employees and even to your customers. Your goal is to make this transition as smooth as possible, so your company continues to grow and prosper even without you at the helm.
Is now the right time for you to sell? Are you ready? Start assembling your team by contacting Rogerson Business Services, one of the top business brokers in Sacramento, California. We’d love to talk about how we can help you find the right buyer for your business at the right time, and how together we can ensure that the sales process goes smoothly.