Exit Planning Techniques By Market
Selling a Fundraising Business
Forget about what you read in the paper -- fundraising businesses are being sold everyday and the business-for-sale market is poised for even greater growth in the months ahead.
Business buyers are a timid lot, even more so now that they are facing an uncertain economic landscape.
There are still plenty of fundraising business buyers looking for opportunities that present well in the marketplace.
Leveraging Seller Concessions
It's becoming more difficult to sell a fundraising business without considering seller concessions. In a down economy sellers become bankers; an unwillingness to finance at least part of the sale of a fundraising business can translate into a dead deal. Capital is scarce, causing new entrepreneurs to rely on sellers to finance at least part of the purchase price. As an alternative, clearly state that seller financing is not an option and consider offering other concessions to see the sale through to its completion.
Finding Prospects
Many sellers don't realize how many prospective buyers there are for their businesses. We frequently see qualified buyers emerge from the seller's network of business and personal acquaintances. In other cases, sellers take a proactive approach to finding likely buyers and contacting them directly. Competitors may seem like natural prospects and they are. The downside is that they won't pay top dollar and will probably absorb your company into their own.
Working with a Professional Accountant
Accountants come into play at several stages of the sale process. Most fundraising business have significant tax consequences requiring the input of a qualified accountant. Brokers often advise their clients to have an accountant perform an audit of the business prior to sale. With seller financing becoming common, professional accountants are playing a more central role in negotiations and buyer qualification.
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