Making Your Company Worth More
Think your company is worth a lot? The important number is what you can sell it for. Learn how to prepare your business for consistent growth and consistent value.
By Jose De La Portilla & Victoria Richardson
Whether you plan to sell your business or give it up only when your cold, dead fingers can’t hold it anymore, you should know what your company is worth, and how to raise the value to buyers or whomever takes over when you pass the torch.
This is why we are releasing this “Dealer Roadmap to Success” video series and accompanying articles.
Selling a Business Takes Time
Many business owners believe selling their business would be a quick way out. That isn’t necessarily true. According to statistics from “ACHR News,” on average, in the U.S., it takes 8 to 10 years to sell an HVAC company.
Not ready to put your business up for sale and wait almost a decade for the sale to close? Buckle up and come along with us, as we give you real information with real solutions you can incorporate into your business immediately. By the way, businesses with higher profitability are worth more when they go to sell. Let’s make your business more profitable.
When we sacrifice, work long hours and pour blood sweat and tears into our businesses, we tend to emotionally value our companies. More often than not, a buyer isn’t willing to pay what you “feel” your business is worth.
The factors buyers look at have nothing to do with what it took to build the company; they’re looking for quantifiable metrics such as annual sales, existing customer base under contract and truly measurable forecasts. Don’t worry. We’ll walk you through turning the tables in your favor.
Maintenance Agreements are the lifeblood
The true lifeblood of your business is maintenance contracts. In this series, we will cover in detail how to sell maintenance contracts almost every time. This may be the largest factor in turning the tables in your favor. Maintenance agreements give a prospective buyer physical, quantifiable proof of a customer’s existence. Pair your list of maintenance agreements, with your data on selling systems to customers who have existing maintenance agreements, and now you have a strong forecast for upcoming sales years.
Bam! The value of your company just went up.
Throughout this “Dealer Roadmap to Success” series, please feel free to post any questions you have, and we will respond as quickly as possible. If you don’t feel comfortable posting a question or comment publicly, we understand. Just send a message to firstname.lastname@example.org and we will respond directly to you in absolute confidence.
Did you know that HVAC Learning Solutions offers a Virtual Instructor-Led Course to teach your techs how to sell more maintenance agreements?