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Selling a Charitable and Nonprofit Fundraising Business
Most businesses are susceptible to economic conditions and charitable and nonprofit fundraising businesses are no exception. But in some cases, a down economy can actually improve saleability. All it takes is a strategy to identify solid prospects and convert them to buyers.
Economic data is scary stuff for small business owners. But quarterly data dumps don't impact charitable and nonprofit fundraising business sales nearly as much as sale strategy.
Qualified buyers are constantly looking for attractive charitable and nonprofit fundraising businesses. Like always, unprofitable and poorly positioned businesses struggle to find buyers while sellers who have invested time and effort to prepare their sale are being rewarded in the marketplace.
Current Market Conditions
No one plans to sell a charitable and nonprofit fundraising business in a down economy. So far, government intervention and promises that the economy is slowly recovering haven't been enough to alleviate many entrepreneur's fears. However, many business sellers don't realize that a full economic rebound can have devastating consequences, particularly if sellers who have waited to list their businesses suddenly create a glut in the business-for-sale marketplace. So what's our point? The economy isn't the most important factor in the sale of your business. Instead, you should be focusing on making your charitable and nonprofit fundraising business as attractive as possible so to buyers right now.
Sale Documents
We run into a lot of charitable and nonprofit fundraising business sellers who intend to wait until the final contract to negotiate details. Big mistake. With few exceptions, sale structure is hammered out early, in the Letter of Intent . If you are seeking buyer concessions, the time to address them is before the Letter of Intent is drafted. For sellers, that makes a close review of the Letter of Intent more than a formality - it's a critical juncture on the path to closing.
Finding Charitable & Nonprofit Fundraising Business Buyers
Buyers of charitable and nonprofit fundraising businesses run the gamut. Some are seasoned charitable and nonprofit fundraising business veterans interested in expanding their operation or adding a new location. Others are first-time entrepreneurs with a taste for the small business lifestyle. Avoid pigeon-holing your search to a single buyer category. Although it's helpful to target promotional tactics to likely buyers, allow for some exposure to the broader market. networking may also prove to be a valuable resource for identifying prospective buyers, but only to the extent that it can be done discreetly.
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