You’ve spent countless hours building your electrical contracting business, and now you’re ready to sell. Get top dollar for your business by answering these five must-ask questions before selling an electrical contracting business in Charlotte, NC.
YOUR GUIDE TO SELLING AN ELECTRICAL CONTRACTING BUSINESS IN CHARLOTTE, NC
In recent years, the electrician industry has experienced substantial growth due to an increase in home renovations and new construction. If you’ve been thinking about exiting your electrical services business, now may be the ideal time to do so. Cash in on your years of hard work by following these five expert steps for selling an electrical contracting business in Charlotte, NC.
1. WHEN WILL I EXIT THE ELECTRICAL BUSINESS?
Regardless of if your business is involved in electrical installation, electrical construction, or acts as an electrical contracting firm, the first step in preparing your electrical contracting business for sale is to develop an exit strategy. As the small business owner, make sure to detail everything from when you plan to exit the company to whether or not you’re willing to stay on as an advisor. Your exit strategy should also take into account whether or not your employees will stay on under new ownership. Consider journeyman, foreman, superintendents, and those that work in administrative roles in your office. A well thought out exit strategy will ensure a seamless transaction and make for a smooth transition into new ownership.
2. DO I HAVE ALL OF MY FINANCIALS AND CONTRACTS IN ORDER?
Next, you must gather all of your contracts, financial statements, lease agreements, payroll information, and other important documents. Work with your attorney, accountant, or a trusted advisor to get all of your essential paperwork in order. Potential buyers will be particularly interested in reviewing your company’s financials to ensure the business is sound. Make sure that you’re prepared to answer questions and provide details.
3. HOW MUCH IS MY ELECTRICAL CONTRACTING BUSINESS WORTH?
After you’ve organized your financials and essential documents, it’s time to value your electrical business. Typically, the best way to value a business is to hire a third-party valuation service. An independent business valuation will provide you with an unbiased, realistic idea of what your electrical contractor business is worth. With a valuation in-hand, you’ll be able to defend your asking price more easily than if you had valued the business yourself.
4. WHO WILL BUY MY ELECTRICAL BUSINESS?
Some electricians plan to keep their electrical contractor business in the family, while others look for an outside investor to buy them out. If you know you’d like to sell your business rather than keep it in the family, consider who might be most interested in buying it. Do you have an employee that might be interested? Is there a competitor in your market that might like to acquire your electrical business?
5. HOW WILL I GET MY BUSINESS LISTING IN FRONT OF THE RIGHT BUYERS?
Finding an interested buyer with the right qualifications to buy an electrical company can be one of the most challenging steps in the sales process – especially if you’re still working full-time and managing the day-to-day operations of your electrical business. Consider enlisting the help of an experienced business broker to help you list your electrical business for sale and market the listing to the right buyers.
With an understanding of the Charlotte, NC market, and the business owners in the market, a business broker can be an invaluable resource when selling a business. Plus, with access to a network of interested buyers, business brokers can often identify an interested buyer more quickly than you could on your own.
To learn more about selling an electrical contracting business in Charlotte, NC, and for expert advice, contact the team at VR Business Brokers of Charlotte. We have years of experience helping electricians– like you– sell their businesses and find the right buyer for the right price.