Selling Your Business to a Foreign Buyer
If you are considering selling your business, and you are interested in the foreign business market then there are a few things that you should know to help be successful. It is difficult to manage running a business, as well as presenting the business to suitable potential buyers. Selling your business on an international level is much more complicated than selling in your own country.
You should select a business broker, a lawyer and an accountant with a history of successful international business sales experience. This is not a time where using a â€śrookieâ€ť is acceptable. Because of the lengthy process, as well as the complications that can appear, you want a team with as much experience as you can possibly afford.
You also need to work to develop an in-depth marketing plan. The main sections to include in your marketing plan are: history and nature of the business, five year financial overview, business operations, business management and employees, competitive analysis, industry and market expectations, and business strategy and projections. The purpose of this marketing plan is to sell your business, so ensure it is well prepared to convey a professional image to potential business buyers.
Regardless of where your potential buyers are coming from, you should always have them screened through your broker. This helps ensure that only serious business buyers who are qualified and can afford to buy your business will get to speak to you, as well as reduce the chances that your competition will find out that your business is for sale. Confidentiality is key when selling a business.
When selling your business to a foreign buyer, most communication should be done in writing. This helps to reduce miscommunication and gives you time to research and clarify any issues that you do not understand due to language barriers. If you insist upon handling matters over the phone or in person for all issues, selling your business could become a frustrating experience.
In addition, you should never negotiate without your broker. While you may be an expert at selling a business in your country, you may not know how to handle a foreign buyer. With a good business broker, you should be able to get a great price for your business despite all of the hassles and problems that can appear. A well-developed marketing plan will make the sales process much easier.
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