Exit Planning Advice By Market
Selling an Agricultural Biotechnology Business
You've learned a lot during your tenure as an agricultural biotechnology business owner. Now the trick is to convince cautious buyers that your operation is worth the asking price.
The process of selling an agricultural biotechnology business can be one of the most stressful experiences of your entrepreneurial career.
Too often agricultural biotechnology business owners cave under the pressure and settle for a lower sales price than they should. With the right strategy, your sale doesn't have to end that way.
Timing the Market
Timing is everything when it comes to selling an agricultural biotechnology business. With interest rates at all-time lows, it's easy to see why agricultural biotechnology businesses are an appealing investment opportunity for savvy investors. As the interest rates rise, it will be more difficult for buyers to make the numbers work in their favor. So we see market timing as a concern that can be easily mitigated by applying fundamental sales strategies and adequately preparing your company for buyers.
Sale Costs
In an agricultural biotechnology business sale, pricing is based on a number of factors, including the costs incurred during the sale. Although they can significantly increase the final sale price, brokers typically receive a 10% commission. Professional consultations can also represent a significant expense during the course of an agricultural biotechnology business sale. Furthermore, your time has value, so you may need to include a personal compensation consideration in your expense estimates.
Family Business Sale Tips
The idea of passing a business along to a family member sounds idyllic to many business owners. in reality, a family-based agricultural biotechnology business sale can be more complicated than selling to a stranger. Often, a sale to a family member creates fractures within the family. Whether you offer the family member special concessions or not, either the buyer or other family members may take offense. If possible, discuss a long-term, generational transition with the entire family and seek the advice of a professional consultant.
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