How to Get Top Dollar for Your Painting Company

Want to know how to get top dollar for your painting company? Being the owner of a professional painting company requires expertise and knowledge on how to run an efficient business and understanding what your customers’ needs are. There are some things that you’ll need to consider before you get started selling your painting business.

One of the most important things for buyers is profitability analysis. This blog post will cover how to get top dollar for your painting company by analyzing profitability with the net profit margin method.

First, let’s talk about a few things in general.

Be honest about your company’s strengths and weaknesses

Painting companies can often have very high overhead costs, and it’s essential not only to charge enough but also to sell at the right time.

You’ve probably heard the saying, “paycheck to paycheck.” It’s an unfortunate truth that many companies have trouble balancing their monthly expenses.

But did you know that some companies are so afraid of paying employees what they’re owed, even for overhead costs such as office supplies and travel reimbursement, that it can come back around like a boomerang?

So if you plan on selling your painting company, it’s essential, to be honest in disclosing any financial detail that could potentially affect the sale, even the simplest of those overhead costs that most companies ignore in their valuation process.

Offer a complete range of services and products, so customers don’t have to shop around for different vendors

This method helps retain your customer base. It creates loyalty to the company that, in turn, makes customers more willing to pay more for your services or products. Many painting companies offer only one service or product. They often have trouble finding the right buyers when it’s time to sell their businesses. It is hard to compete with other painting companies that provide more services and products in their range without resorting to discounts or selling at a lower profit margin.

The secret to making a sale is knowing where your customer needs you the most.

That is never more true than when you’re trying to sell the company in which you’ve poured blood, sweat, and tears into building from scratch.

Put together a portfolio of work that is representative of your style as well as examples of jobs you’ve completed recently

You want to put together a strong portfolio, as it may make or break any sale, so it’s worth investing time into putting together a great one!

Especially when it comes to painting companies, a lot of the decision-making power when it comes to exiting will be based on the portfolio of past work since it displays your company’s reputation in your service area. A good visual representation of your work is an essential part of selling or buying any company.

Ensure that the photos are well lit and shot from multiple angles while showing the amount of work that went into the job. Keep in mind that potential buyers will be looking at your portfolio for a significant amount of time, so you want to make sure it is aesthetically pleasing and easy to navigate.

Educate yourself not only about the technical side of painting but also the business side.

Once you have a handle on both sides of your painting company, you’ll stand out to potential buyers. Plus, you’ll also gain more valuable knowledge about how to run an efficient business. This will help you understand what and how much to charge when it comes time to sell.

How to Get Top Dollar for Your Painting Company: Profitability Analysis

So you’ve put together a great portfolio, and now what? How do you get the most money out of selling your company?

Good profits are different for every buyer and depend on the specific industry in which your company operates.

Net Profit Margin (NPM) is calculated by taking your total revenue and subtracting all non-recurring costs such as marketing fees. The net profit margin number gives a relative indication of how profitable your business is.

A reasonable profit margin for a painting company can be anywhere from 7 to 12 percent.

You can trust that your business will only be seen by the right eyes when working with Sunbelt Business Brokers.

From a confidentiality standpoint, we’re unparalleled in this industry – our brokers treat every sale like it was their own and keep all of its information private from start to finish!

If you’re considering selling an established business & want to learn how to get top dollar for your painting company, get in touch with us today so one of our local brokerage teams can work closely with you through your upcoming transaction. We have locations in Fort Myers, Naples & Sarasota.