Preparation and Research are Crucial When Selling Your Propane Company
Before you start discussing the sale of your propane company, you will want to prepare for the process. Often propane business owners are surprised to learn that the details of how their company operates and the ability to detail their business success in a complete package is a necessary and challenging task. You will want to take a broad look at your operations and make improvements in any areas of weakness. By taking time to prepare in advance, you will be able to maximize the value of your business.
When looking for a company to acquire your propane business, you will want to do your research before making a decision. You’ve worked hard to build a successful propane business and you want to make sure you choose a reputable company.
The following are some important questions to consider:
• Does the company’s values and mission align with yours?
• Will the company provide exposure, growth and financial stability?
• Does the company have a transition plan for your customers and employees?
• Will the company maintain your legacy and tradition of excellence?
• Does the company give you the option to remain involved with your business?
• Will the company pay the proper value of your business?
Selling your propane business is an important undertaking. ThompsonGas has successfully acquired and integrated many propane businesses like yours. We can help you determine what you will need if you are thinking of selling your business either now or in the future.
When Preparing to Sell Your Propane Company, Here are a Few Things to Consider:
Considering selling your propane company? What do you need to do and when? Without a doubt you want to make as much money as possible and pay as few taxes as possible. Now, we’re not lawyers or tax consultants, but here are a few things to consider if you are a few years out from selling your propane company.
Consider these items:
• Get your company records in very good order. Anyone serious will want to review them.
• Make sure your as many of your propane tank agreements are signed as possible.
• Work towards trending upwards margins.
• Stop selling propane tanks and focus instead on leases.
• Begin working with your accountant to get your revenues and expenses under control.
• Keep a close eye on your receivables accounts to keep them at a minimum.
• Before you try to sell your company, there is some definite housekeeping you need to attend to. It’s best to begin thinking about these things in advance.
At ThompsonGas, we have a well-designed acquisitions model that will help you address many of these types of issues so when it’s time to sell, you’re ready.