Building and selling a successful business means you have to think internationally.
As an expert on international business and international business negotiation, Can I tell you what international business negotiation has to do with selling a small or medium-sized business in the US?
I think it does have something to do with selling a small or medium-sized business that's located in the United States in two ways.
One, when the owner of the business has a long-term strategy for preparing the company for sale. In order to increase the value of the company, it may want to seek international business and develop international business relationships. It makes a more attractive portfolio with respect to the business than without it.
In order to build those relationships, find customers abroad, land customers abroad, the owner of that business or its people are going to have to engage in negotiation to do it.
Secondly, in thinking about potential buyers for a business, it's important for the seller to think internationally.
There are potential buyers out there who may be willing to pay maybe a better price for the business than a local buyer would.
They may be willing for a variety of reasons. One is because your business may have very special value as a way for a foreign company to penetrate the United States market. So as part of your strategy for selling the business, you really need to think about potential international buyers to give you strength and position in the market for selling your business.
There are considerations you have to take account of in selling an international business that often don't arise.
One, of course, is identifying a potential international seller. The other, secondly, is to get information about that seller.
In this country we have various services and networks that allow us to get information about potential buyers and often those services and networks don't really extend beyond our borders.
And once you sit down at the table to negotiate, there are a variety of business practices and cultural differences one should be savvy about.
I think adding a potential international buyer to your list, developing a strategy that incorporates potential international buyers, will in the end pay you significant dividends.