Personal and professional concerns surround the sale of an inventors business. In our experience, a common owner concern is how the sale will affect customers and employees.
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At Gaebler, we think waiting for the economy to rebound is a mistake for many business owners. Any inventors business can be sold at any time -- you just need to know how to influence the right buyers.
In an inventors business sale, pricing is based on a number of factors, including the costs incurred during the sale. Hiring a broker is a mixed bag because although brokers can increase the sale price, they also take a 10% fee. Depending on your circumstances, you may also incur substantial expenses in hiring legal, appraisal and accounting professionals. Furthermore, your time has value, so you may need to include a personal compensation consideration in your expense estimates.
Objectivity is a rare commodity in a business sale. You have invested yourself in making your inventors business the success it is today, but in the eyes of prospective buyers, your operation is only worth fair market value. It is difficult for many owners to accept the cold, hard facts about their company's worth, but objectivity is the name of the game in a successful inventors business sale. A business broker can be a valuable resource in right-sizing your expectations and preparing you for market realities.
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 an inventors business negotiation. But great negotiation begins with knowing yourself. What is the realistic price range for your inventors business? What is the minimum amount you're willing to settle on? Are you willing to offer seller financing or other concessions to close the deal? If you can't answer these questions, you're simply not ready to sit down at the negotiation table yet. A negotiating strategy is essential because it not only establishes parameters, but also creates a plan for overcoming buyer objections and impasses.
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