Niche Market Exit Planning Tips

Selling a Biological Laboratories Business

We hear from a lot of business owners who are timid about listing their biological laboratories business. Despite the mood of the market, we think there are still opportunities to receive a good price for your biological laboratories business. Here's what you need to know . . .

Business-for-sale markets are less dependent on economic conditions than most sellers think they are.

The economy hasn't squashed the market for biological laboratories businesses. Not surprisingly, buyers expect to receive value for their dollars - and that means sellers need to demonstrate that their businesses are capable of delivering anticipated returns.

Dealing with Your Emotions

Business sellers sometimes struggle to handle the emotions of a sale. You probably have good reasons for selling your biological laboratories business now, but that doesn't make the emotions you will experience any easier. We advise sellers to discuss their feelings with family members and close friends before, during and after the sale. At the same time, it's helpful to consult with people who can help limit the influence of your emotions on negotiations and other aspects of the sale process.

Sweetening the Deal

Today's biological laboratories business buyers expect sellers to offer concessions to persuade them to close the deal. Concessions can consist of non-cash as well as cash incentives. When you've reached your limit on price, consider offering non-cash concessions to encourage a commitment from the buyer. A limited amount of training and mentoring may seem inconsequential to you, but to a young biological laboratories business owner, they can be critical launching points for their ownership journey.

Professional Appraisals

An experienced appraiser is part and parcel of a successful biological laboratories business sale. By hiring an appraiser to conduct a thorough appraisal of tangible and non-tangible assets prior to listing, you get a measure of the true worth of your business. Although the appraised value of your business may not be the same as the sales price, you gain valuable insight that can be used to your advantage during negotiations. If you're disappointed with the appraiser's estimate of your company's worth, you have the option of seeking a second opinion. However, it's more often the case that you will need to adjust your expectations of your business's value to buyers.

Share this article


Additional Resources for Entrepreneurs

Lists of Venture Capital and Private Equity Firms

Franchise Opportunities

Contributors

Business Glossary