Business Exit Planning
Selling a Medical Testing Business
Does the economy have you down? For exiting owners, the idea of listing their company now can be terrifying. Fortunately, a medical testing business sale isn't as scary as it seems.
Business-for-sale markets are less dependent on economic conditions than most sellers think they are.
In today's market, there is still plenty of room for medical testing businesses that demonstrate solid earning capacity and a robust market position.
Preparing for What's Next
So you've decided to sell your medical testing business. That's great -- but have you considered what's next? Are you moving on to another business venture? Are you retiring? many sellers find themselves ill-equipped to handle life after their business and fail to understand that their future plans can influence the sale process. For example, seller financing can be an extremely valuable concession, especially in the current economy. But if you need all of the proceeds of the sale upfront, seller financing is off the table and you'll need to find a different way to make your medical testing business attractive to buyers.
Business Valuation
Professional appraisers can use three methods to determine the value ofa medical testing business: The income method, the asset method and the market method. While the income method uses anticipated revenues as a value basis, the asset method focuses on the company's capital, real estate and intellectual assets. Finally, the market method determines the worth of your medical testing business based on the sales of similar businesses in your geographic area. All three methods have multiple variations and it's not uncommon for appraisers to use a combination of the three to determine the value of your business. Sellers should take note of the fact that all three valuation methods reward businesses that takes steps to increase assets and income.
Maximizing Sales Price
A successful medical testing business requires an investment of both time and money. Fortunately, a business broker can minimize the impact on your bank account and personal well-being. Solo sellers usually find that it's simply too much to sell their business and lead it at the same time. Subsequently, they settle for less than the business's potential sale price. For a lot reasons, a decision to hire a broker is almost always the right decision, especially for sellers who need to receive top dollar for their medical testing businesses.
Share this article
Additional Resources for Entrepreneurs