How do I sell a closet and storage business?

Closet and storage companies are practical, hands-on businesses, and buyers will want to see that practicality in the paperwork. They are looking for a workshop that runs, a sales process that works without you in every home and a record of what each job earned. Organizing those three things before you speak to buyers can make the questions easier to answer.

Job costing and design files

Pull together your job-costing records so a buyer can see how a typical project is priced, built and installed. Organize the design files by customer and date, and confirm you can transfer them. Be careful with customer information, and ask your lawyer what a buyer may see before a confidentiality agreement is signed and what has to wait until later.

The equipment list

Make a list of the workshop machinery, tooling, vehicles and software, with age, condition and service history. Note anything that is leased or financed, and anything owned by you personally rather than the company. Buyers often bring in their own inspector, and a tidy list with maintenance records makes that visit go well.

Passing on the design-sales role

If you do the home visits, a buyer will worry about what happens when you leave. Start training a designer, or bring a capable salesperson to appointments. Describe how you win work from builders and designers, and offer introductions in the transition. Your accountant and lawyer can help you weigh a transition period against a clean exit.

Deposits on jobs that close later

Customers usually pay deposits before installation, and many jobs will still be open when a sale closes. Prepare a schedule showing each job, the deposit and the stage of work. Your lawyer can advise on how the buyer takes on the work. Keep the records afterwards, as set out in what records to keep after selling.