3 Good Exit Strategies for When You Want to Hand Off Your Construction Business

Long-running businesses have more value than the services they provide and the equipment or capital they own. Businesses of every size can have a lot of their value tied up in their ownership and their brand. Customers in your area trust your company name and your logo. There’s a lot of goodwill that can pass on to a subsequent owner. So if you think it’s time for you to leave your small business, either to retire or to try new pursuits, don’t just let your business shut down.

What are the three best exit strategies for construction businesses?

Exit strategies are an important end goal for every business to have. Many entrepreneurs start up businesses just to sell them at a profit to people interested in maintaining a company. Even business owners who manage their company for decades need to prepare their transition away from a company. There are several ways to do it. Here are three easy strategies.

Sell it to a private buyer.

Your company is a fully functioning entity. It has equipment, ongoing business contracts, a good record of customer service, and established demand. Buyers with enough capital can buy your business so they don’t have to deal with growing pains, competition, and the probable financial failure within the first five years of operations. Once you find a third party you can trust with your company name, it’s just a matter of negotiating the price.

Pass it off to a friend or family member.

If you want someone to inherit your company or take the reins, that’s another popular option for small businesses. You may not get as much profit as with the first option, but that’s because this isn’t just a financial interaction. You’re giving it to someone who you trust to keep up the company’s quality. It’s also a great way to keep assets in the family.

Look for large corporations.

Many large corporations spread their national brand by incorporating local businesses instead of trying to undercut the competition. If you have received offers from larger corporations, even just cursory interest, now is the time to consider it. With a large corporation, you know the financial aspect will be handled smoothly and existing company contracts will be honored.

Go to HCMM, Inc. to start getting your exit strategy organized.

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