Ask any business broker the best time to list your business for sale, and he’ll almost always answer “right now.” And there’s a good case to be made for taking action as soon as you’re sure about your decision to sell.
But for many owners of seasonal businesses – and the lawn business may be the most seasonal of all – the idea of putting a company up for sale during the busiest months feels daunting. Even if you’re not actually out pushing a mower, the summer months take up much of your bandwidth, dealing with customers and staff. Who also has time to deal with all the hassle of managing potential buyers?
That’s why every owner should work with an experienced business broker. My job is to help you develop a strategy, understand the process, prepare for due diligence, qualify buyers, and ensure the deal keeps moving to the close. Getting started with the listing takes five or six hours over several weeks, some of which can be accomplished during evenings and weekends.
Here’s why you should consider listing this summer.
First, many owners think that the summer is a bad time to take on a sale. That means they’ll be waiting until fall to list when things have slowed down. If your company is on the market during the summer, you’ll be facing less competition and have a better chance of attracting attention from potential buyers.
Second, we know that it will take a couple of months to find a buyer and close the deal, so your actual departure from the business will be in the fall.
New owners often prefer taking over in the fall, when things quiet down, and they can invest time into making a smooth transition, training staff, and reaching out to regular customers. Starting early on the diligence process means you’ll be closing at the best time for you and the buyer.
There’s no way to game the market and decide the perfect time to list. None of us knows when the right buyer with the right offer will appear. However, the best way to ensure your business is ready when the buyer is interested is to have a listing that will get their attention.
The first step is to get a complimentary opinion of value.
About the author: Jim Parker
Jim Parker is an experie
nced business broker specializing in lawn and landscape businesses. His company is based in Clermont, Florida. As an industry leader he has served as the past president of the Business Brokers of Florida and currently sits on the International Business Brokers Association’s Board of Governors. Jim is a sought-after speaker who he teaches others in his industry best practices in ethics, closing transactions, and finding qualified buyers. He has earned over 50 awards and recognitions in his career.
He is a Certified Business Intermediary (CBI), Certified Mergers and Acquisition Professional (CMAP), Masters Certified Business Intermediary (MCBI), and is
a Mergers & Acquisitions Master Intermediary (M&AMI. He is one of one of less than 20 business intermediaries in the world that have all four of these designations. To contact Jim, visit TheLawnBoss.com or call (407) 927-8999.