Whether your goal is retirement, opening a new business in a different field, or more time to spend with your family, it pays to plan well in advance when it comes to putting your HVAC business up for sale. We’ve been through several acquisitions and have the experience and knowledge to help you make the transition as seamless as possible.
Preparation Is Key: How to Sell Your HVAC Business
Once you decide to sell your HVAC business, it’s time to get organized. The sooner you can start putting these processes into place, the better – it will make the transition and selling process much easier for you, your team, and the eventual owners of your business.
How to Prepare for a Successful Sale
The best thing you can do to prepare to sell is to get all your ducks in a row and be ready for the process. It’s not going to happen overnight. Selling a small business can take anywhere from a few months to a year or more. But once complete, leaving your business in good hands can be a source of pride.
- Get your books in order. There’s no shortage of paperwork in a small business; having all of it organized will save you headaches during the sales process. Contracts, taxes, inventory lists, revenue statements, and anything else related to operations should be collected, organized, and checked for accuracy. Have the last three to five years of records in order before you try to sell your HVAC business.
- Document your processes and workflow. Having documentation about how you run your business, how your team responds to calls and deals with customers, and any other aspect of how you run your company is essential to the purchaser. This helps in both the discovery process and in assisting the transition of ownership.
- Have an exit strategy in place. Do you want to stay on with the business after the sale in some capacity? Do you want to ensure that your team is kept intact? Have a plan for how you want to deal with the professional, financial, and personal aspects of a sale well in advance of when you put your business up for sale. The more you plan now, the less stressful it will be later.
- Wipe out debts. A debt-riddled business isn’t one that a buyer will find attractive. Get your debts cleared up now.
- Take care of outstanding invoices. Finish large outstanding jobs now to increase revenue on the books and make the transition easier.
- Prepare your team. Once you know you’re going to sell, let your team know so they’re not in the dark about what’s happening. Be transparent – they’ve worked hard for you and will appreciate the honesty, even if it’s a bit stressful.
When to Sell Your HVAC Business
Ideally, you’ll want to sell your HVAC business when it’s doing well, even though that seems somewhat counter-intuitive. It’s beneficial to you, as the seller, because a company that’s doing well will be worth more. It’s also helpful to the buyer, who will take control of a stronger, better-organized business, making the transition more straightforward and seamless.
The more planning and preparation you can do in advance, the better.
Related Content: Why These HVAC Companies Have Partnered with Southern Home Services
Are You Thinking of Selling Your HVAC Business?
It can be bittersweet to move on from the world of small business ownership. But leaving your business in good hands can ease the sting and help you get ready to move on. Finding the right buyer is essential, mainly if you include current service contracts with your business.If you’re considering your options regarding the future of your home services business, partnering with Southern might be the right solution. Call us at (407) 519-3265 or contact us online to learn more about selling your small business to Southern Home Services.