Optimizing Business Exits
Selling a Reunion Planners Business
Is the economy still a little shaky for a business sale? Sure it is. Yet reunion planners businesses haven't heard the news and are reporting steady action on the business-for-sale market.
In any economy, there is a right way and a wrong way to sell a business.
If your exit strategy involves selling a reunion planners business in this environment, sellers need to make a strong case for buyers to purchase at or near the asking price.
Legal Considerations
It's obvious that you're going to need to hire an attorney to finalize the sale of your reunion planners business. A good lawyer serves a variety of functions during the process. In addition to reviewing the letter of intent, sales contract, and other documents, your attorney should be capable of advising you about due diligence and the tax consequences of the sale. In some cases, an attorney may also provide assistance in securing long-term leases or vendor contracts to make your reunion planners business more attractive to buyers. If you don't know an attorney with experience in the business-for-sale market, ask your broker for a referral.
Understanding Market Timing
Now may be the best time to sell a reunion planners business. A depressed economy means lower interest rates; lower interest rates increase the number of investors willing to take a chance on reunion planners businesses. As the interest rates rise, it will be more difficult for buyers to make the numbers work in their favor. So we see market timing as a concern that can be easily mitigated by applying fundamental sales strategies and adequately preparing your company for buyers.
Seller Financing
Capital is hard to come by these days. Financial institutions have tightened up their lending policies, making it difficult for inexperienced and undercapitalized entrepreneurs to buy reunion planners businesses. As a result, buyers expect sellers to finance a significant portion of the sale. Although 100% seller financing isn't recommended, sellers are financing up to 70% of the sale price to close deals.
Share this article
Additional Resources for Entrepreneurs