If you’re ready to sell your HVAC business, it’s time to take the plunge. What are you waiting for? Perhaps your fears are holding you back, or you’ve gone down a rabbit hole of misinformation about selling your business. You need some guidance on how to separate the facts from the bologna. Below, you’ll find five common myths about selling an HVAC company debunked:
Myth #1: You Can Sell It All By Yourself
Of course, if you’re an HVAC broker or have handled many business sales yourself, you’re all set. But for the first-time seller, conquering the selling process solo might be your most stressful and confusing experience. You will quickly learn that you bit off way more than you can chew. Before you try to handle your business sale on your own, ask yourself these questions:
- What experience do I have selling a business?
- Will I maintain confidentiality and be able to keep the deal a secret from my employees, customers, and suppliers while working on the sale?
- Can I financially pre-qualify interested buyers?
- Can I balance running a business and figuring out how to sell it?
- Do I have the ability to create professional and on-brand marketing materials?
- Do I know how to find the right buyer?
Suppose you answered yes to all the above questions. In that case, you can stop reading this blog and continue to rock this sale—most of those selling an HVAC business benefit exponentially from hiring a professional broker.
Myth #2: You Can Wait To Sell When You’re Ready
If you’re always waiting for the perfect time to accomplish something, you likely won’t do it. Life hardly ever hands us perfection. If you are always looking for a reason not to sell your HVAC business, you’ll always find one.
Understandably, you want to feel 100% sure about your decision to sell your company. It’s a significant life event with so many emotions, but personal readiness isn’t the end-all-be-all deciding factor. Economic circumstances have a substantial impact on the selling process and outcome.
Economic factors that could impact the sale price of your business include:
- Interest Rates
- Customer Concentration
- Product Concentration
- Operating Structure
- Industry Consolidation
Chat with your broker about your goals to help determine when your business’s value, life circumstances, and market conditions align in your favor.
Myth #3: You Know The Value Of Your Business
There are a lot of factors that go into a business valuation. Some owners will value their business at a number they want it to be or a number that would support their retirement. Be wary of an inaccurate valuation, and don’t accept a business valuation from anyone who doesn’t evaluate, value, and sell businesses for a living.
Hiring an experienced HVAC broker will ensure you get eyes on your business and wind up with a pool of prospects. The ball will be in your court if you have a healthy business priced right. A business broker will thoroughly analyze the company and the industry market. They won’t just give you a vague number but have a thorough understanding of the company’s growth potential and assets.
Myth #4: You Can Treat It Just Like Selling A House
Selling a business is very different from selling a house. While both require some preparation, your house may need a fresh coat of paint and the carpets cleaned. On average, a home will sell in less than four months.
However, selling a business requires at least a year of pre-planning and prepping. You need to drive sales, lock in key staff, control expenses, document operations, and get your books in order. Even after the transaction, it can still take several months of transition compared to a house sale, where you’re free the minute you sign the papers and hand over the keys.
Myth #5: Your Business is Different
We know your business is special to you, but that doesn’t mean everything will magically work out when you try to sell it yourself. Your business is unique, but you are not the exception to every business rule. No two HVAC businesses are the same. But with that said, most middle-market business sales consist of certain variables concerning business valuation, deal terms, and financing structure. Refrain from falling into the mind trap of believing that your business does not fall into the expected business sale norms based on industry and size.
Selling your business may cause so much overwhelm that you cut corners and push important matters aside. One of the biggest reasons to have an HVAC broker on your team is to take the burden off of you and focus on the areas you’re best at.
Don’t try to sell it yourself if you have zero experience. Mitigate the mindset that you can wait till you’re ready to sell. A guess is not a valuation. Selling a business is very different from selling a house. Your business is most likely not the exception. Learning the truth behind common business selling myths is a significant push in the right direction.