Part Two – Preparing Your Trade Business For Sale
Series: How To Sell Your Trade Business
Guest: Brandon Jacob from Contractors Financial Opportunity
After evaluating your business, the second step is to prepare it for selling. This preparation is challenging, but it’ll be easier with the help of the right professionals and the right mindset.
In this episode, Brandon shared a list of things you will need to prepare your business for sale. The first on the list is to have a service and replacement residential work mix. The second is to have proper management in place. The third on the list is about updating your assets. He also noted that service agreements and warranties are essential aspects.
If you are interested in selling your business and other topics related to what we discussed today, check out these episodes:
- TSS205 – How to sell your value and maintain a solid sales process – [LINK]
- TSS008 – Job Management with TradiePad – [LINK]
About this podcast, ‘Preparing Your Trade Business For Sale’
Podcast Highlights:
- 6:01 – Other considerations regarding a business’ earnings
- 11:38 – Looking over financial records, forecasts
- 16:10 – Tax management
- 21:37 – Possible misuse of company funds
- 23:29 – Non-reoccurring expense
- 27:03 – Replenishing assets
- 29:22 – Book reviewing
- 31:14 – Other things that make a business more attractive
- 36:00 – Having proper management in place
- 40:06 – Detailed processes as an advantage
- 41:45 – Well-branded business with a good reputation
- 43:41 – Updating assets
- 46:26 – Risk exposure
- 50:15 – Handing over the balance sheet
- 53:31 – Preparing your business to sell
- 56:53 – Mindset needed when selling a business
- 59:07 – Common transition period
- 1:00:51 – Debt levels
- 1:03:00 – Service agreements
- 1:08:35 – Warranties
An owner’s mindset is equally important when selling your business. You must prepare yourself to let go of the business. Through this, you can avoid wasting yours and your buyer’s time.
Before selling your business, you need to seek the help of a professional who can review your company’s financial books. This review is necessary so that you can manage your expectations regarding your business’ value. Further support from an expert can also help you analyze the company’s tax management.
Legal documents, such as service agreements, are essential because they drive the business. Thus, having an excellent service management program is highly suggested. It is also advisable to keep service agreements no longer than twelve months.
About Our Guest
Brandon Jacob is a Certified Public Accountant and the owner of Contractors Financial Opportunity, LLC. For over 20 years, his expertise has helped clients with business valuations and transactional support when it comes to selling their businesses. He also authored two books, For What It’s Worth and Operation Exit Strategy.
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