Over the past decade or so, the green energy space has been exceptionally volatile. On the one hand, it’s widely acknowledged that green energy solutions are a logical necessity for our current and future energy needs.
On the other, fluctuating opinions in the political arena have rendered government and private funding anything but stable, making it tricky to determine where things are heading. Selling a business in the green energy niche is, as a result, somewhat complicated. If you’re looking to sell in the near future, then this is what you need to know.
Choose favourable market conditions
Due to the aforementioned instability of these kinds of markets, it’s imperative that you choose the right time to sell. You need to look at market conditions for the green energy sector more generally, but also at your specific product or service more specifically.
For example, a reduction in government grants for wind farms may negatively impact the wind energy sector, while having a positive impact on solar farms. You’ll need to choose the right moment to sell, and if that moment is fleeting, make sure that you’re prepared to push things through quickly.
Use an appropriate business broker
You can absolutely make a lot of money from selling a business in the green energy space, but to do so, you’ll need to find the right kind of buyer. Depending on the size of your business, these parties may be relatively few and far between, and it’s crucial that you use the right avenues to find them.
In general, it will be best to use some kind of business broker such as Dexterity Partners. Make sure that the service you consider has experience in the green energy sector – after all, you primarily want to make the most of the contacts that they’ve gained through that experience.
Prepare the business properly
When selling any kind of business, solid preparation is one of the most important aspects of the sale. With businesses in the energy sector – green or not – this becomes even more important.
Not only will you need to prepare all your accounts, in order to facilitate a proper evaluation, but you’ll also want to make sure that any documentation required to prove regulatory compliance is as it should be.
The energy sector is subject to a range of regulations, and prospective buyers will be keen to show that they won’t have to struggle with these should they buy the business. Having everything on hand to ease these worries can help to ensure that the sale goes as smoothly as possible.
These broad pointers should help you to direct your business sale, but it’s important that you don’t try to do it all alone. Make sure that you engage the services of an appropriate accountant, business broker, and potentially other more niche consultants to guide you through this complex process. You want to get it right the first time around, and with the right help, you absolutely can.
