18. How To Sell a Pest Control Business
Are you a Pest Control Business Owner and want to find a buyer?
Find free help below “How to sell a Pest Control business”.
Point 1: Who should I talk to about selling my business?
There are several people you should talk to when you are considering selling your Pest Control business. If you are married, you need to consider talking to your wife (if you haven’t already done so). This is extremely important if the corporation or company is run by a husband and wife team (which many times they are), and even more important if the wife is involved in the day to day activity of the business. Sometimes the wife is the final decision maker. This can create a very touchy situation, especially if she does not want to sell. Many times either the wife wants to sell and the husband doesn’t, or the husband wants to sell and the wife doesn’t. This is a consideration that should be given serious thought. You need to be in 100% agreement before you go any further.
The second person you need to talk to is your accountant or C.P.A. (Although this is not necessarily the order you need to do this in.) You need to determine what your tax position is and what your tax position would be if you were to sell your business. Should you take cash or finance it? Do you want to earn the interest? Your accountant or C.P.A. would, of course know your business situation and your overall tax picture better than anyone else.
The third person you might consider talking to is an attorney. Explain to him what you would like to do and ask if there is anything that you should take into consideration that should be included in the closing documents that pertain to your unique situation. The attorney has many solutions to legal and financial questions, especially when you are not sure of your buyer’s financial position. A buyer may decide to walk away from the deal because there are too many provisions that protect you and not enough for him to make the sale worthwhile. I suggest you have the attorney outline your options. Then you can make a decision based on your personal game plan. Another very important factor to consider — be sure to see an attorney who specializes in business transactions. If you don’t, your attorney may have to do a lot of extra research in order to complete your transaction (which, of course, will run up your fee). Be sure you plan to employ the same attorney you originally talked to or you may have to pay double. Incorrect procedures can cause unnecessary delay … try to avoid it! Look in your yellow pages to see if your attorney is listed under “Business Attorneys.” If he isn’t, you may want to consult with one of the business attorneys listed.
The fourth person you might consider talking to is someone to help you “price” your business. Some pest control operators have been in the business for a long time and think they know what their business is worth. In reality, they don’t know their business’s worth on the market. All they really know is what its worth is to them personally. Believe me, there is a lot of difference in the market value and what the business’s value is to the owner.
The next person I would suggest seeing is a professional business appraiser. Have your business appraised so that you will know what fair market value is for sure. Ask your pest control association tto furnish you with the name of the nearest certified business appraiser. (http://pestcontrolbiz.com/business-buyers-and-sellers/pest-control-business-appraisal/) Look for ones who not only use standard industry appraising techniques, but their own professional expertise, as well, to help you determine a price. In addition, any certified business appraisers they may recommend, have been tested to insure that the appraiser knows what he or she is doing. To insure superior integrity during an appraisal, recommended appraisers are required to abide by an exact set of guideline rules set forth.
Another person you should contact when trying to sell your business is a broker. There are several different ways you can look at the brokering end of business. You may have a local real estate broker that is familiar with the pest control business. If you are not sure, ask if they have any experience in selling pest control companies. This is something to consider if the town is large enough. A+ Business Brokers, Inc., lists and sells pest control companies in the USA, and has been since 1982. This should be a prime consideration, since we have over 700+ buyers who are ready to buy now in our data base. We also offer free consultation to help you decide what you want to do and how you should proceed.
Another good person to talk to is another pest control business operator. It would be a good idea to confer with someone who is not in your area — someone who is not a competitor (especially someone that would keep it confidential). Talk with them about selling. Keep in mind that some people have had bad experiences. What is important is the amount of preparation you take before you get into the market. It is not wise to make any serious decisions or plans without looking into every area involved. The market in Pest businesses does change. Hire someone who is an expert and has the credentials to get you the highest and best price for your business. Selling time varies with the market and how much you are above it or below it. If you want the best, call me first. Al Woodward 386-454-3333.