With warm temperatures almost year-round, Phoenix is a literal hotbed of potential clients for HVAC companies. Phoenix is the 6th most populous city in the nation and there are more than 4.5 million people in the metro area, creating plenty of room for competitors in the HVAC space. All these factors make buying an HVAC company a solid investment for entrepreneurs — and that makes selling your HVAC business for a decent price possible.
Sellers who have owned their companies for a while and are looking to make a change, either in their own career or for retirement, should take certain steps to make the most of such an opportunity. Here are four steps to take if you’re planning to sell your HVAC company in Phoenix or anywhere in the state of Arizona.
1. Consider the Existing Market
First, consider whether the existing market in your area is likely to continue supporting your business. Phoenix has plenty of potential customers a new HVAC business owner can market to, but that might not be the case in a rural area.
Second, consider the state of your competition. Is a larger company honing in on the territory, or is a competitor positioned to grow rapidly and take over a large chunk of the market?
These types of factors help you understand how to best position your company for a sale. If there are plenty of customers and your client list is thriving, you might sell to an entrepreneur who wants to get into the business or to a competitor who wants to grow. If your customer list is dwindling but you have the best techs and processes in the area, competitors might want to buy the business for those assets.
2. Prepare for Due Diligence
No matter who buys your HVAC company, you’ll need to present paperwork to support due diligence. Buyers will want to see documentation such as financial records, licenses, information about your staff and inventory. You can expedite a sales transaction by having all this information organized before you even put your company on the market.
3. Make a Plan for Yourself
Many people decide to sell a business or retire from a career without a solid plan for themselves. The result can be unpleasant feelings of ennui or even mental and physical health concerns that crop up suddenly as you find yourself spending days more aimlessly. While there’s nothing wrong with relaxing after running an HVAC business for years, make sure you have a plan for yourself to avoid some of the potential negatives. Plans might include:
- Traveling now that you’re not encumbered by a business
- Taking up new hobbies or learning new skills
- Taking an exciting new step in your career by working for someone else in a different niche
- Buying or starting a completely different company — if the thrill of building a business from the ground up is what keeps you going
4. Consult with Professionals
Finally, consult with professionals to ensure everything goes smoothly with the sale of your HVAC company. You might want to consider speaking with:
- An accountant, who can help you get your business books in order and invest the proceeds of the sale to fund the next step in your career or life
- A lawyer, who can ensure all your paperwork is in order and help mitigate any legal risks that might arise from selling a company
- A broker, who can help you find the right buyer, facilitate the sale confidentially and get the best price for your company
The brokers at LINK Business Phoenix