What Goes with It What You’re Really Selling with a Kitchen and Bath Installation Business
When you are selling your kitchen and bath installation business, an important thing to ask and answer is what exactly you are selling. Certain parts of your business are a given, but others might be up for negotiation or even part of a completely different sale.
Some things, like employees, can transfer if the person wants to stay on with the new owner or get hired by the company taking over your business, but you cannot really “sell” them. So, what is involved with selling a kitchen and bath installation business? Here are a few of those things.
Your Name
Generally speaking, unless you are part of a merger or consolidation deal where your company is becoming part of another, your name goes with the business. Even in most mergers, the company purchased ceases to exist, since it will no longer have assets of its own? More on that in a moment, but although you are free to go start another company if you would like, most often the name of the company you own now will no longer be an option for you.
Why would someone want your name?
Your Reputation
The biggest part of your name is your reputation. The buyer wants your business because it is steady or better yet growing, and you already have a good reputation in your community. If they wanted to start with a new name, they would probably start their own business from scratch.
Your Contact Information
Your phone number is also very important. It is how people reach you, and it is likely on marketing materials, business cards, and advertisements already. The same is true of your website, your email addresses, at least your general ones, and even your fax line.
Why is this important? Because for people to continue to contact your kitchen and bath installation business, including repeat customers and those they refer, your contact information needs to stay the same.
Equipment and Assets
The trucks you own, the equipment you have, all of those things go along with your business. While employees may have their own sets of tools, there are likely shared tools that stay with each crew. These types of things go with your business.
This should be especially true of safety items and other training materials. This also includes shop space and real estate, whether you own that space or the new owner will take over your lease. In that case, be sure your landlord meets your buyer and approves of them continuing your business there.
Usually, this includes phones, computers, and other office items as well unless your deal stipulates otherwise. A buyer will have certain expectations, so be sure that you understand them.
Current Inventory
While you might not keep a lot of things on hand, you probably have some standard sinks, tubs, and other plumbing items you need on almost every job. These things all go with your business as well, so be sure that your inventory is current and correct. Be sure it is updated whenever you make an order or use something on a job during the sales process.
Often the valuation of your inventory is one of the last things you do when preparing to sell your business.
Reports and Customer Lists
All the data you have collected goes with your business, with some exceptions. E-mail lists and some other records sometimes require the approval of the customer before they are transferred to a different owner in order to protect their privacy.
However, social media profiles and contacts and other simple prospecting lists that do not include personal information typically are just part of the sale. Be sure you know the law in your area before you simply hand over customer lists, though. You may need to email or mail a notice to those on your list or in your CRM once the business is sold so they have a chance to opt out of future contact if they wish.
Cash and Debts
This area is a little trickier. Sometimes your accounts simply transfer over, and the new owner not only takes possession of current customer invoices that remain unpaid but also of inventory purchases and other outstanding short-term debt as well.
However, if you took on certain large debts that are long term, like working capital to run your business, you may still bear the responsibility for that debt. The assumption of debt and accounts payable is usually a big part of the business purchase negotiation process.
Miscellaneous
Each business is different, so there might be a number of things that you would not normally think of that are a part of the sale of your kitchen and bath installation business. Think of it this way: anything that has the business name on it, that the business owns, or that is essential to the operation of the business generally goes with it.
There are of course exceptions to every rule, and every business sale is different. When you are trying to figure all of this out, it is helpful to have professionals on your side. A business broker can help you understand what goes with your business and how much it is actually worth.
That’s the key to all of these things, getting a good business valuation so you know how much you can sell it for. If you are in the Sacramento area and looking to sell your business, contact Rogerson business Services today. We can help you through the entire process until you find the right buyer for your kitchen and bath installation business.
