Optimizing Business Exits
Selling a Research and Development Services Business
Don't believe anyone who tells you it's easy to sell a research and development services business. A lot of things need to happen before you can successfully exit your business. But with a few tips, you can keep your shirt and your sanity in the sale of your business.
You need to get a good price for your research and development services business. To get there, you'll need to set realistic expectations and follow a deliberate selling strategy.
Many business owners don't know that research and development services businesses are still a hot commodity, to the extent that sellers have properly prepared them for the marketplace.
Negotiation 101
As a business seller, you have to be at the top of your negotiating game. More often than not, the person with the most knowledge will come out on top in a research and development services business negotiation. But before you can negotiate effectively, you need to have a clear sense of your minimum sale requirements. If you lack clarity about your goals, you're guaranteed to fall short of achieving of them. If you aren't sure what you need, put negotiations on hold until you gain a clearer understanding of your own deal parameters.
Advantages of Hiring a Broker
A good broker can offer several benefits to business sellers. Right out of the gate, brokers know how to help their clients properly prepare their businesses for a sale. More importantly, brokers have the ability to identify serious buyers and maintain confidentiality throughout the sale process. Typical brokerage rates (a.k.a. success fees) run 10% of the final price - an expense that is usually recouped through a higher sales price and less time on the market.
Advertising Your Sale
The best research and development services business sales begin with a carefully planned advertising and promotional strategies. However, confidentiality and other concerns can present challenges, even for sales professionals. The knowledge that your business is being sold almost always converts into negative PR with your customers and vendors. The best way to advertise a research and development services business is to enlist the assistance of a business broker who is skilled in locating and contacting prospective buyers.
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