There has been a lot of private equity activity in the service trades since the COVID-19 lockdowns. Suddenly, boring old businesses gained monetary sex appeal when they were declared essential and could continue making money while many other local businesses were effectively shuttered. This has led to a land rush for good service contracting businesses and many plumbers have grabbed the brass ring while the grabbing was seen as good. Is that right for you? Here are seven signs it might be time for you to exit.
Are you essential to your business? If your business cannot run without you, it is not a salable business. While most private equity buyers will try to lock you in for a number of years, they do not want to invest in a business that would not exist if you get hit by a truck. For this reason, if you ever want to sell, you should make yourself non-essential. Not only will this make your company more attractive, it’s a lot of fun to not have to worry about the things you hate, only the things you enjoy.