Is It the Right Time to Sell Your Maintenance Business? 5 Signs You Should Consider Selling Now

June 27, 2024
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Are you thinking about selling a maintenance business like janitorial services or landscaping? If so, you might be wondering if it’s the best time. Here are five signs to watch for that usually point to now being the right time to sell.

You’re Ready to Retire with No One to Hand the Business To

Facilities maintenance is hard work. If you’re like many people in the industry, you started hands-on before growing your business to where it is today, with you in the boss’s office. And now you’re ready for an easier daily schedule.

But what if you have no one who wants to take over the business? Perhaps you have no children or your kids are busy with their own careers. Unrelated staff may not be as committed to the company as you were. Selling might be the best option.

You Have Outgrown the Business, or It Has Outgrown You

Do you wake up some days itching to do something else? Not finding your business as exciting as it used to be? Maybe your enthusiasm has been drawn to a more challenging field. Or you feel you’ve maxed out growth for your geographic area.

It could also be that scaling your business requires more than you are willing or able to provide. You might not have the marketing background or time to take it to the next level. Especially if you’re already well over 40, you might not want to invest in growth at this stage of the game when many people are lightening their loads, not creating more work for themselves.

The Market Is Healthy

Making the sale of your business worthwhile calls for a healthy market. That means there is a demand for your services. Even better, room for expansion through additional branches or new services is wide open.

A healthy economy is a big part of that equation. Customers have to be able to pay for your company’s services. And funding criteria should be at least reasonably friendly for buyers.

Economic Changes Are Likely on the Horizon

The market might be great now, but what about six months or a year from now? Are there rumblings about an economic downturn? Are customers starting to tighten their belts? Some other signs of a coming bumpy economic road include:

  • Increasing unemployment
  • Stagnant or decreasing wages
  • Deflation or inflation
  • People carrying excessive debt
  • Property values dropping
  • Bank failures
  • Stock market volatility
  • Inverted yield curve in bond market
  • Reduced consumer confidence

If you’re thinking about selling, you don’t want to wait too long. You could put selling on the back burner, and in a year, everything could change. Customers could start doing their own landscaping or painting in-house to save money. And your opportunity for a higher valuation or to sell at all could be gone.

Of course, there are also personal economic changes that you might foresee. These include events like:

  • Divorce
  • Moving to care for elderly parents
  • A child starting college
  • Real estate property devaluation
  • Loans coming due

Selling your business might be a necessity to weather increased financial pressures in the near future.

The Business Is in Good Financial Shape

Owning a facilities maintenance business that’s strong financially puts you in more of the driver’s seat when it comes to selling. And no one wants to acquire a business that’s plagued with money problems.

What are some signs that a small or midsize business is doing well financially?

  • You have good business credit.
  • Your cash flow is steady.
  • You have a business emergency fund.
  • Your revenue is increasing faster than operating costs.
  • Your customer reviews are excellent.
  • You attract new clients while maintaining existing ones.
  • Your company has no problem recruiting and retaining workers.
  • You regularly meet short-term metrics and long-term goals.

Perhaps you’ve even had someone approach you about selling your company.

If you can check off one or more of these signs above—the more, the better—The Batallan Group would like to talk with you. We’re key players in business acquisitions in your field. 

Contact us today!

Disclaimer: The information provided in this blog post is for general informational purposes only, reflecting our perspective on what matters most when selling business. This content is derived from the collective experiences and expertise of our team at The Batallan Group. However, every business is unique, and individual circumstances may vary.