Selling Your Pest Control Company: The Exit Plan
Deciding to sell your business is a big decision. A thoughtful exit plan that defines the primary reasons for the exit, those key items that maximize value and a timetable for such exit require considerable time and energy. A competent financial intermediary or broker should be able to help craft such an exit plan to ensure the maximum value is achieved for a seller. A few items that should be considered:
Define alternative exit plan strategies – Will you sell to an industry player, or sell to your management team, or perhaps it’s time to pass the torch to the next generation.
Determine a target value for the company – An informal valuation is the first step. Will this value be enough to achieve your objectives post-sale? If not, what can be done to enhance value over some extended period of time?
Information collection and presentation – What data is available to prove value? Do you have accrual based financials? Do you have signed customer service agreements?
Preparing Marketing Material – Well packaged and presented business summaries increase a buyer’s confidence and comfort level and increase the likelihood of a successful sale.
Identifying and qualifying potential buyers – A competent financial intermediary or broker will have a list of potential buyers that will have been carefully vetted to help ensure a good fit.
Working with accountants, lawyers and others to negotiate the deal – A competent M&A team is paramount to maximizing value, property documenting any transaction and helping with a smooth transition of the business from a seller to a buyer.
Successfully exiting your business is a complicated process. Considering the above and employing the services of a competent financial intermediary or broker can make this process both profitable and manageable.