Exit Planning Advice By Market
Selling an Association Management Consulting Firm
Few entrepreneurs relish the idea of selling a business in a struggling economy. Yet association management consulting firms continue to be sold at a brisk pace, outperforming the sales of many other types of businesses.
Dire economic forecasts have forced many association management consulting firm sellers into hibernation. Instead of listing their companies now, they're hanging back until they see signs of an economic recovery.
If you're ready to move on, now is the right time to sell your association management consulting firm.
Sale Costs
In an association management consulting firm sale, pricing is based on a number of factors, including the costs incurred during the sale. Hiring a broker is a mixed bag because although brokers can increase the sale price, they also take a 10% fee. Depending on your circumstances, you may also incur substantial expenses in hiring legal, appraisal and accounting professionals. If you need to compensate employees to assist with the sale, their services should also be considered.
Sweetening the Deal
Today's association management consulting firm buyers expect sellers to offer concessions to persuade them to close the deal. But don't limit your view of concessions to financial incentives. When you've reached your limit on price, consider offering non-cash concessions to encourage a commitment from the buyer. A limited amount of training and mentoring may seem inconsequential to you, but to a young association management consulting firm owner, they can be critical launching points for their ownership journey.
When Is the Right Time to Sell?
Most business owners know when it's time to exit their company. Opinions are mixed and some consultants are advising association management consulting firm sellers to put their plans on hold until the economy fully rebounds. We aren't nearly as pessimistic about the association management consulting firm marketplace. The inventory of what we consider to be quality association management consulting firms is actually low right now and there is room for the right sellers to realize substantial gains with investment-conscious buyers.
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