Advice on Niche Market Exit Planning
Selling a Testing Laboratories Business
There's a right way and a wrong way to sell a testing laboratories business these days. More than ever before, it's important for sellers to know the tactics and techniques that are being used to maximize sales price and achieve desired sale outcomes.
These days, the small and medium-sized business market is more confusing than ever before. There are lots of buyers who want to own a testing laboratories business, but have limited capital to get their foot in the door.
However, serious buyers also understand the value of a good testing laboratories business. So for testing laboratories business sellers, today's market is all about convincing buyers that the numbers make their companies worth the asking price.
Selling Time
From the day they decide to sell their company, the question that plagues many owners is how long it will take to sell their testing laboratories business. Although asking price and other factors contribute to sale time, it's difficult to predict how long your business will be on the market before you locate the right buyer. Before you can list your testing laboratories business, you'll need to invest as much as a year in preparing it for prospective buyers. In a good market, an attractive testing laboratories business can sell in as little as a few months, although it can take more than a year to find the right buyer after the business is listed.
Valuation Methods
Professional appraisers can use three methods to determine the value ofa testing laboratories business: The income method, the asset method and the market method. The income method determines value based on the amount of income the business is expected to generate. The asset method, on the other hand, is based on the value of tangible and non-tangible assets (e.g. brands and trademarks). Finally, the market method determines the worth of your testing laboratories business based on the sales of similar businesses in your geographic area. As a safeguard, consider conducting appraisals using variations of multiple appraisal methods. Sellers should take note of the fact that all three valuation methods reward businesses that takes steps to increase assets and income.
Selecting a Broker
A good business broker is your best bet for a fast and profitable business sale. In the testing laboratories business industry, experience is a must-have characteristic for qualified brokerage. The chemistry you have with your broker is a consideration. If you don't connect with a specific broker, move on to someone else - even if the first broker looks great on paper.
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