Top Signs That You Should Consider Selling Your Construction Business
Are you a construction business owner in Ontario? Wondering whether to put your construction business up for sale or not? Then this post is a good read for you. Working as construction business brokers, here are some of the top signs when you should consider putting your construction business for sale in Ontario, Canada?
Good Business Value
You may want to consider selling your business anytime you have an opportunity to get liquidity. This is because running a business, especially a construction business, is risky. The longer you may hold on to it, the bigger it will become, and the more chance you risk failure.
When the business is in the early stages, it is easier to take the risk because there is not much value in the business to lose. But as the business grows, so does the value, and thus, business owners become more conservative. Besides this, if you are old and no longer have the time to spend years in damage control, it is best to exit the investment if you get a good value.
Desire for Change
If you are a serial entrepreneur, you may come to a point in your life where you may crave change. That's when you might want to consider selling your construction business and tapping into a new opportunity that comes your way. Serial entrepreneurs love the thrill and excitement that comes with building successful businesses that they can sell for a profit. For them, that enough is motivation. They are always looking for options to move forward. So, if you are ready for change, go ahead and sell your construction business.
You're Experiencing Losses
Not all reasons to sell a construction business are positive. Sometimes you may have to sell and exit your business because of losses. Studies show that approximately 65 percent of companies tend to fail in the first ten years. Therefore, it is crucial to understand that failure is normal.
If you are not running a profitable construction company and have to cut into your retirement fund or life savings to keep your business afloat, then we'd say sell. Look at your financial statements and tax returns to get a clear picture of where your business stands. If your business is becoming a liability and your debts are growing, it's better to exit than to stay.
It's Time to Retire, and there is NO Successor.
You may want to put your construction business for sale in Ontario if you're close to retirement and have no successor to carry on your business. In such a situation, it’s best if you liquidate it as fast as you can because it can get challenging for you to deal with if you fall ill or get too old to continue to run it. The stress of selling your business in those circumstances can be too much to handle. Besides this, the buyers may use your circumstance as leverage against you.
If you want to sell your construction business due to any reason, you can contact us. At N3 Business Advisors , we are construction business brokers strongly committed to helping business owners sell and buy construction businesses. We can help you navigate through the process smoothly and make the selling process stress-free and fast. Our core competencies lie in working with construction businesses like HVAC companies, landscaping businesses, mechanical contractors, building or construction material suppliers, electrical contractors, general contractors, civil engineering firms and other ancillary companies that operate within the construction space. At our firm, we offer full spectrum of services including business transition planning, business valuations, business acquisitions, business sales, transaction due diligence etc. to small to mid-size businesses that have annual revenues between $500,000 and $20 million