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We have helped dozens of businesses owners sell their business, and in the past year, we have represented two sellers during the sale of their plumbing company. While many factors come into play while selling a business, such as size, cash flow, industry trends and market conditions, we wanted to provide you with a couple formulas that are commonly used to calculate the worth of a plumbing company. Keep in mind that only a professional business broker can tell you the true value of your business. Now that you understand what types of formulas are used to calculate the value of a plumbing company, you can begin taking steps to ensure your business secures the highest multiple possible.
I have compiled a list of tips on how to boost the value of your plumbing business so that when you are ready to sell, you are able to reap the reward you deserve. Preserving our planet is important and more businesses are implementing green initiatives to help do their part.
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While it might not seem like a buyer would care much about how green your company is, another important party might — your clients. Consumers value eco-friendly products and services more than ever before and are often willing to spend a little more to ensure they are making sustainable purchases. One of the most important factors when valuing a business is consistent and strong cash flow, and offering green alternatives to your current products may be a good way to boost your current revenues.
Industry experts have seen an increase in sales of items such as tankless and solar water heaters, as well as central stack plumbing layouts. There has also been in rise in graywater recovery system purchases. Due to the specialized nature of the plumbing industry, certain licenses are required for business owners. If you are the only person in your business that holds a license, this could become a problem for you when you decide to sell, as it will significantly narrow down your buyer pool.
How to Sell Your Consulting business for Maximum Value
The top tier license level requires years to obtain, which will surely deter any buyer that does not already hold the license. This is where you have a chance to be proactive and significantly increase the value of your business and create a more seamless transitionary period after the sale — get your employees licensed.
Start by taking a look at your team. Who are the most tenured, experienced employees that you feel will remain loyal to the business after your departure? These are the employees that are worth investing the time, money and energy of licensing into. We recommend licensing a few employees within your organization so that your team can practice a higher level of plumbing work and so that there will always be a license holder should another employee quit.
For a general overview of what types of basic and advanced licenses your employees will need, where they can take the classes and what is required, visit the website below. As we mentioned above, specialized licenses can take a while to obtain. Taking the time to get your employees licensed now will help you down the road when you are searching for the perfect buyer. A team of skilled employees is one of the most important factors in buying a business.
Planning Your Exit: Selling a Plumbing Company
Buyers will want to be sure they are walking into an established, organized business where the employees take pride in their work and are accountable for quality and service. To create this strong team environment in your business, we recommend providing continuous training to all of your employees. By constantly training your employees, they will not only provide higher quality work but they will also decrease your liability, giving buyers the peace of mind that your business is reputable and efficient. California, Florida and Texas — the three most populated states in the US — are the best places to negotiate a Consulting business sale.
The reason to sell always varies from each person. Maybe you are looking for new challenges, businesses and opportunities, or you just want to enjoy your family and retire. If you have read all the necessary steps to understand your valuation, and think you have focused on all the topics that make your company worth more, it is maybe time to start the process. Usually companies sell in 9 months, but you can also see deals getting closed in 3 to 6 months depending on the opportunity.
This step by step process will help sale process. From First Time entrepreneurs, to businessmen interested in new opportunities, the chances are that in the consulting industry it may likely be a person who already has experience in the field. How should I sell my consulting business?
Smaller business and micro-businesses are usually best sold privately by the owner through forums or classified websites. To sell your consulting business, check out: Larger businesses are best sold through investment banks or merger and acquisition companies. Larger deals attract a smaller fee. Below is a range of fees at each deal value level. There have been very few consulting business sold in the past 10 years, but the asking price of those 61 businesses is high enough, as the multiple is 3.
That means consulting business can be very profitable. If you want to start accelerating your buyout process, fill out our free valuation form and get your business valued today!
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View the listings we have available for sale today. Tune into the Digital Exits Podcast for all the latest tips and tactics from expert special guests! Get your free price quote for. What is your Consulting Business worth? What are the sales? What is the profit? What are the growth trends? What is driving new sales and is that sustainable? What channels do new customers come from and what is the breakdown of each channel? What is your market position?
Planning Your Exit: Selling a Plumbing Company - Viking Mergers & Acquisitions
Is your Location favorable? How reliant is the business on the owner? What systems and processes are in place to run the business? What makes a Consulting business worth more? What does the average Consulting business sell for? What is the most frequent deal size?
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Is the Consulting business market getting bigger? Are bigger businesses worth more? What states have the most Consulting business deals? Why would you sell in the first place?