How to Sell Your Pest Control Business
Selling your pest control business can be a busy and emotionally trying time. You may worry whether the new owner will take care of your customers' pest control needs as you have. You must make decisions such as whether you will use a broker, if you will finance the sale and how long you will remain with the business when the new owner takes over. You should prepare for what you will do for income after the business sells. Consult a financial adviser if you are retiring to ensure that you will have the finances to support yourself.
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Instructions
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Prepare an explanation for why you are selling your pest control business. Potential buyers will want to know why you are selling out. Common reasons for selling a business include retirement, illness and boredom.
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Prepare to sell your business. Clean up the property and get your accounts in order. Buyers want to see an attractive property with easy-to-read financial statements when they are considering an investment. Make any repairs to your property or equipment. Buy an accounting program to transfer your books to a computer if you are not already using one. These programs allow you to print any financial information for your business to show buyers. Have three or four years of financial statements and tax returns available for buyers. Gather your suppliers' list and any references together with any lease agreements and contracts for your business; make copies to show serious buyers.
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Have your pest control vehicles appraised. Vehicles you use to service your customers represent one of the largest assets of pest controls businesses. Perform any needed repairs and detail them before you take the vehicles for an appraisal.
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Get an appraisal of your business by a business appraiser. If you are selling your business through a broker, he will send someone to you. Your local Chamber of Commerce will help you locate an appraiser if you are selling your business on your own. Locate a broker with experience in pest control or other service industries. Broker's can free up your time during the selling process but you will pay the broker a percentage of the sale for his work. Set your price for the business based on the appraisal but leave room to negotiate with buyers.
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Prepare a statement describing how you conduct business and keep it with a current operating manual and employee handbook. This statement should include your bookkeeping system and a copy of your pest control service contract. Work with an accountant or lawyer to write any contracts provisions of the sale, such as financing agreements if you are financing the sale. Make copies of your pest control licenses, state or federal registrations and bonds to include with your business statement.
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Ask your lawyer to write a sales agreement. This agreement should include a list of everything you are selling, purchase price, terms of the agreement and any fees for not completing the sale. The contract will also specify your responsibilities during the sale and have a space for the sale closing date.
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Continue to advertise the sale of your business as pending until the final paperwork transferring ownership is complete. Doing this coulld give you other prospects if the sale does not go through.
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Tips & Warnings
Plan to work for the new owner after the sale long enough for her to learn the business and meet any customers or subcontractors.
In establishing the true profitability of your business, be sure to correctly list nonoperational expenses and have supporting documentation for these expenses. For example, your business may be paying for your personal automobile lease, Entrepreneur.com advises.
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