July 11, 2020  
 
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Selling a Business

 

Selling a Fraternal Club

A lot can go wrong during the sale of a fraternal club these days. More than ever before, it's important for sellers to know the tactics and techniques that are being used to maximize sales price and achieve desired sale outcomes.

Market timing is a perennial problem for business sellers.
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Most fraternal clubs are good business opportunities, a fact that is not going unnoticed by today's discerning buyers.

Buyer Concessions

Most fraternal club sellers realize they will need to offer concessions to sell their businesses. But for every concession you grant, there may be an opportunity to obtain a concession from the buyer. Although this scenario frequently plays out around seller financed deals, it's possible to push for a higher sales price or other form of compensation if you agree to mentor the buyer for a specified period of time. Asset exclusions, retained ownership shares and long-term contracts with another of the seller's companies can also be leveraged to extract concessions from buyers.

Working with a Professional Accountant

Accountants lay the financial groundwork for a business sale. From a seller perspective, an accountant can offer personal financial assistance, especially when it comes to handling the disposition of sale proceeds. You may also want your accountant to assist in the preparation of professional financials to present to serious buyers. With seller financing becoming common, professional accountants are playing a more central role in negotiations and buyer qualification.

Maintaining Objectivity

Emotions run high during the sale of a fraternal club. Your estimate of your company's worth is probably skewed by your emotions and your close, personal connection to the business. Although it may be a hard pill to swallow, you need to find a way to introduce objectivity into your sale. A business broker can be a valuable resource in right-sizing your expectations and preparing you for market realities.

More Exit Planning Articles

Given your interest in exit planning and in fraternal clubs, you might find these additional resources to be of interest.

Marketing a Fraternal Club

Renewing Leases Prior to Selling a Business


Conversation Board

Sometimes the best tips on selling a business come from other business owners. If you have any tips or advice on how to sell a fraternal club, we invite you to submit your comments and suggestions.


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