Business Exits By Industry
Selling a Convention Center
The business-for-sale marketplace has experienced no shortage of uncertainty over the past several years. But convention centers haven't heard the news and are reporting steady action on the business-for-sale market.
A business exit is always a trying experience. But when you need to sell your convention center in a depressed economy, the challenges can seem insurmountable.
But the good news is that there is still demand for convention centers that present well and offer solid earning potential.
Selling a Convention Center to an Employee
Although it may seem easier to sell your convention center to an employee, this approach also has some pitfalls. A faithful employee may have the motivation and ability to continue to operate the business. If you need to sell quickly, the timeframe is condensed in an employee sale because you don't need to track down a buyer. Yet most employees lack the means to buy their employer's business at or near the asking price. Seller financing is one way to get around the capital deficit of an employee-based convention center sale, as long as you are willing to vet the employee's credit worthiness the same as any other buyer.
Average Preparation Time
There are no effective shortcuts for selling a convention center. Since buyers prefer to see evidence of future cash flow, you'll want to to strategically lock in cash flows and increase profits before you list the business. Additionally, prospective buyers usually request documentation that allows them to understand the business's daily workflows and operational strategy. Since all of this takes time and effort, a convention center can rarely be ready for the marketplace in less than six months. However, to command the highest price, you'll probably need to spend one to two years preparing and positioning your business for buyers.
Working with Appraisers
There is no substitute for a qualified appraisal in the sale of your convention center. Leading industry appraisers equip sellers with a value gauge that can be accessed during negotiations. Following the appraisal, you may choose to delay your sale until you can increase the value of assets and revenue.
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