Thinking about selling your HVAC business but not sure how soon you should start planning?
The absolute short answer is, The Day You Opened For Business.
As I have mentioned in past articles, I have been where you are, I have started, bought, and sold several companies for myself, including an HVAC Company.
My perspective changed drastically when I started to own companies for the reason of selling them. It really made me look at the company completely different. Instead of building the business around me, and my name, it was about the company, and what we delivered to the customer.
When you look at your business from the eyes of a buyer, it will drastically change how you do things, and why. How is your pricing set up for a buyer? How is your customer tracking information? How strict are you on your maintenance agreements? Each of those things are items buyers look for, and the sooner you start to plan for it the better it can be when it is time for you to sell.
Now back to the original question of this article. When should you start to plan for your sale? If the ultimate plan for your business is to be sold at some point in the future, than you should start to build that business with that end in mind at the start, or as soon as you decide that you will sell it.
Does this mean that you cannot run your business the way you want to? Not at all, what I am saying is that typically when people come to me they mention they should have thought of certain things a long time ago. Don’t put these items off, consider them now as you are still growing your business. Not sure what “items” I am referring to? Here are a few to get you started to a higher sales price:
- Reporting all income that comes into the business
- Not being as “creative” with your accounting as you may have been in the past
- Tracking income and expenses in detail so you know where the money is going
- Focusing on maintenance agreements and residual income opportunities
- Inventory controls
Hopefully this gives you some ideas to get started. If you have any questions or comments, please let me know, I would love to hear them.