How To Sell Your Roofing Company
Making the decision to sell your roofing company might not come lightly. But if you do decide to sell a company you worked hard to build from the ground up, you want to make sure you get the best price for the sale.
As a seller, you want to have everything in order from past records to current financial statements. The buyer will only be able to offer a fair price if they know what they are getting into. Ensuring you have everything in order can take some time, especially if you decide not to work with a broker, but having everything at hand can make the sale process easier overall.
Value Your Business
You obviously want to get the best price for your company, but the buyer also wants to be sure the company is worth what you are asking. Having copies of your past sales and future expected earnings can be an extremely important factor when it comes to dealing with a variety of buyers and considering offers.
A great way to solidify the value of your business is by showing potential buyers your current client list as well as your referral network. Having a great reputation in the industry, even if it’s just centered in your small local area, is a vital part of showing buyers that your company has a strong and lasting future.
Provide a complete rundown of exactly what is included with the business. Will you include your current supply contracts, will the new buyer have instant access to contractors you are currently working with, and will your staff remain with the company when it is sold? These can all make a drastic difference in the overall value of the business.
Buyers and Due Diligence
Whether you are working with a broker or selling your company privately, don’t shy away from doing your due diligence when it comes to paperwork and the vetting process with bidders and potential buyers. Having a broker deal with this can give you more time to focus on running the business, but you may prefer discussing terms with the bidders and buyers directly.
Once a potential buyer has been found, it will be important that you provide all necessary paperwork. This will include, but may not be limited to, current and ongoing contracts, 5 years or more of financial statements and profit margins, customer and partner contracting contact lists, detailed organizational charts, and any marketing material that comes with the company.
Depending on the size of your business and the clients you work with, having the bidders and buyers sign a non-disclosure agreement before sharing contact lists is not uncommon so don’t be afraid to require it if delicate information is requested during the financing and sale closing process.
After this process is completed, the sale can be finalized and closed. You or your broker will work with the buyer and their financial institution to ensure all payments are completed correctly and properly.
