Connections between people and connections between brands. Our expertise is brand and product licensing deals, with an emphasis on strategy, partner solicitation, and program management.
When we start working with a brand, we ask them to tell us everything about their business and their consumer base. Are you a brand owner who is considering a licensing program for your brand? Click on one of the two buttons to access the content you wish to view. COVID Remote personalized support Our physical offices are closed, but our advisers remain at your disposal to help you plan the resumption of your activities. Factsheet Product licensing Share on:.
Why would a company look for products it can produce under license? What are the advantages of licensing? What are the disadvantages of licensing? How does a company search and find products that may be available for licensing?
What is the procedure if you or your company has a product to license to others? You get access to the experience and know-how of the company that developed the product. This company may be much larger than yours, with development capabilities that you cannot afford.
You get to break into a new market with this new product, but with the benefit of the experience gained in another market. It makes competition easier if you're a small company with limited resources. You minimize your costs and risks:. The license agreement is normally for a considerable period of time and there may be an annual minimum royalty required. New technology may become available making the licensed opportunity obsolete.
The agreement may force the licensee to accept restrictions on its marketing. Earning 5 percent of gross wholesale sales is typical for inventors. This equals about half of what the licensee earns. But the manufacturer has to manage much more risk and do much more work than the inventor does. Some inventors also earn an advance license fee, or a lump sum paid up front. Others earn equity stake in the licensee's business. The terms of the agreement specify when you'll begin to earn royalties.
Most licensing agreements need product development, manufacturing, packaging, and shipping before generating sales. Therefore, more than a year can pass before you earn royalties. If retailers have waiting periods, you may have to wait for two years before receiving royalties. However, about 95 percent of the 8, new kitchen implements introduced each year fail. That said, to the extent that brokering businesses involves real estate — and it almost always does — having a commercial real estate background is extremely helpful.
In fact, we think that people with a background in commercial real estate are excellent candidates for becoming business brokers. Granted, there are certain aspects of real estate sales-person licensing requirements — ethical business practices and fraud concepts among them — that cross over, but the process of selling a business is not even remotely related to what you learn getting a real estate license or the process of selling a house.
All that said, there is an aspect of real estate training that is extremely helpful and relevant to selling businesses and that is the training offered by the CCIM Institute. CCIM stands for Certified Commercial Investment Member and signifies that anyone with that designation has completed multiple in-depth courses on how to perform investment analyses of and value commercial and investment real estate.
Some of the methods used to value commercial real estate are similar to those used to value businesses. And being able to perform an investment analysis of a business helps justify the price of the business to both the seller and potential buyers. In addition to the buyer and seller, the landlord becomes part of this deal because the lease has to be transferred, assigned or terminated. First, you need to know how to accomplish and negotiate this transfer, assignment or termination.
Second, you need to be knowledgeable about the market for such space so that you can advise your client s accordingly. However, many states require a licensed real estate broker to be involved if a lease is transferred or assigned.
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