Sell a Business Tips
Selling a Scientific and Technical Consultants Business
A lot can go wrong during the sale of a scientific and technical consultants business these days. With little room for error, your business sale has to feature the flawless execution of concepts that are driving today's business-for-sale marketplace.
Dire economic forecasts have forced many scientific and technical consultants business sellers into hibernation. Instead of listing their companies now, they're hanging back until they see signs of an economic recovery.
Despite the conventional wisdom, we believe current economic conditions are right for selling a scientific and technical consultants business. With the right information and strategy, you could be well on your way to a successful sale
Valuation Methods
Multiple valuation methods exist for a scientific and technical consultants business. Appraisals based on the asset method gauge value as a factor of the company's real property and non-tangible assets; appraisals based on the income method consider the business's anticipated revenue. In many sales, the most accurate valuation comes from the market method which determines value based on the recent sales of similar businesses. A good appraiser will often use multiple valuation methods to arrive at a reasonable estimate. Sellers should take note of the fact that all three valuation methods reward businesses that takes steps to increase assets and income.
Maintaining Objectivity
Objectivity is a rare commodity in a business sale. Your estimate of your company's worth is probably skewed by your emotions and your close, personal connection to the business. Although it may be a hard pill to swallow, you need to find a way to introduce objectivity into your sale. A business broker can be a valuable resource in right-sizing your expectations and preparing you for market realities.
Sale Costs
You'll need to incorporate the cost of the sale into the calculation the minimum price you are willing to receive for your scientific and technical consultants business. Good brokerage takes a 10% success fee off the top of the final sale price. Attorneys, accountants and appraisers work for a flat fee that can range from hundreds to thousands of dollars. Furthermore, your time has value, so you may need to include a personal compensation consideration in your expense estimates.
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