Business Exits By Industry
Selling a Charity
With the economy limping along, many charity owners are hesitant to put their businesses on the market. Don't be deterred by economic uncertainty. There are plenty of reasons why this is the right time to put your charity on the market.
A business exit is always a trying experience. But when you need to sell your charity in a depressed economy, the challenges can seem insurmountable.
Many charity owners fail to receive fair market value for their businesses. That's unfortunate because all it takes to get a fair price in today's market is ample planning and an awareness of what's important to buyers.
Leveraging Industry Connections
Today's charity buyers can be found in a variety of locations. Online business-for-sale databases have value, although they appeal to an exceptionally wide base of prospects. More focused prospects are typically found within industry networks. Time and time again, successful charity sales emerge from relationships within the industry. The challenge is to leverage industry connections while keeping knowledge of the sale hidden from your competitors. Use good sense in restricting the flow of information within the industry and focusing your efforts toward trusted industry allies.
Promoting a charity Sale
The best charity sales incorporate comprehensive advertising plans. However, confidentiality and other concerns can present challenges, even for sales professionals. The knowledge that your business is being sold almost always converts into negative PR with your customers and vendors. Business brokers are skilled at publicizing charity sales while maintaining the confidentiality that is critical to your business.
Selling to a Family Member
Selling a business to a family member might sound like the best of both worlds. You get an exit strategy, your charity stays in the family, and everyone is happy. Yeah, right. In fact, selling your charity to a family member can quickly become a no-win proposition. Whether you offer the family member special concessions or not, either the buyer or other family members may take offense. Although it may seem odd, a sale to a family member can take longer than a sale to a stranger because it may take time to work through family issues prior to closing.
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