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5 Steps to Successfully Sell a Plumbing Business in Charlotte, NC
Did you know that the average family in the United States uses 300 gallons of water per day? That’s a lot of water– not to mention a lot of opportunity for plumbing businesses! If you’re preparing to sell a plumbing business in Charlotte, NC, or the surrounding area, now may be the ideal time to do so.
How to Sell a Plumbing Business in Charlotte, NC
Are you considering selling your plumbing company? Follow these five steps to successfully prepare your profitable plumbing business for sale.
1. Prepare an Exit Strategy
Whether you own a small plumbing contractor business or a plumbing franchise, the first step in selling a plumbing business in Charlotte, NC is developing an exit strategy. While business owners should always have an exit plan in place, an exit plan is particularly critical when selling a business. A well thought out exit plan should detail all of the following:
- When do I plan to exit my Charlotte-based plumbing business?
- Will I retire post-sale, or look for new opportunities?
- Am I willing to stay on under new management for a set amount of time?
- Will my plumbers and other staff stay on under new ownership?
- Do I need money from the sale of my plumbing business for retirement?
- Who will buy my plumbing business? An existing employee? A competitor? A family member?
- What will I include in the sale of my business? What am I selling?
- Will I offer seller financing?
Once you have answers to all of these questions, you should be ready to move forward.
2. Gather Important Contracts and Financials
The plumber that purchases your business will be interested in seeing everything from contracts and taxes to lease agreements and financial statements. That being said, it is essential that you organize your books and have all of your important documents together prior to listing your business for sale.
Typically, it is best to work with an attorney, accountant, or trusted advisor to ensure all of your documents are in order.
3. Perform a SWOT Analysis of Your Plumbing Business
Next, you should conduct a SWOT analysis of your plumbing business. While it can be challenging to take a critical look at your business, this process can help you increase the value of your business and identify any sore spots that might scare off potential buyers. Once you’ve pinpointed your business’s weaknesses and opportunities, set goals to address each point.
This portion of the sales process forces you to really think about what sets your business apart from others, as well as what might pique the interest of a buyer. Specializing in a specific segment of the plumbing industry such as commercial plumbing or new construction may be one strategy to increase the value of your business. Another strategy may be focusing on sales with the hope of expanding your customer base and landing contracts. The more repeat customers your company has, the more attractive it will be to a potential new owner.
4. Value Your Plumbing Business
Valuing a plumbing business is a critical, yet often underemphasized, step in the sales process. To value a business in Charlotte, NC, it is best to enlist the help of a professional valuation service. While you can try to value the business yourself, it is not uncommon for owners to overvalue their business due to emotional attachment. Plus, with a third-party business valuation, it can be easier to choose and defend an asking price when you list your plumbing company for sale.
5. Hire a Business Broker in Charlotte, NC
Finally, consider hiring a business broker to help you sell a plumbing business in Charlotte, NC quickly and effectively. Working with a business broker enables you to focus on plumbing services and daily operations, while he or she focuses on finding and qualifying potential buyers. Plus, business brokers have an extensive network of potential buyers at their fingertips, which makes an invaluable resource for sellers.
To get started, contact VR Business Brokers of Charlotte! Our team of experienced brokers can help you sell a plumbing business in Charlotte, NC quickly and for top dollar. In fact, we’ve already helped close deals for a number of other plumbers in Charlotte, NC. Schedule a free, confidential call to learn more about how you can effectively sell your plumbing company.