How to Sell a Niche Market Business
Selling an Educational, Charitable or Nonprofit Organization
You've heard the naysayers - now isn't the time to sell a educational, charitable or nonprofit organization. But what they don't know is that many entrepreneurs see educational, charitable or nonprofit organizations as a smart business investment.
Personal and professional concerns surround the sale of an educational, charitable or nonprofit organization. In our experience, a common owner concern is how the sale will affect customers and employees.
Although we understand why sellers are hesitant, we're also seeing enough business sales to know that if you want to sell an educational, charitable or nonprofit organization, you can - even in today's economy. Here's how to do it . . .
Legal Considerations
It's obvious that you're going to need to hire an attorney to finalize the sale of your educational, charitable or nonprofit organization. Competent legal counsel ensures that the sale documents are in proper order. Furthermore, a good lawyers provides the counsel necessary to navigate the tax and liability issues that surround a business sale. We recommend hiring an attorney early in the process to gain insights about the legal consequences of various sale outcomes.
Buyer Concessions
Most educational, charitable or nonprofit organization 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. Like seller concessions, buyer concessions should be addressed during negotiations, before the preparation of a Letter of Intent.
Pre-Sale Checklist
The upfront time you investment in the sale of your educational, charitable or nonprofit organization will pay big dividends at closing. Perhaps the most important pre-sale consideration is to right-size your expectations to the realities of the market. Armed with a realistic timeframe and asking price, you can begin to consult with your broker about the best way to approach likely buyers.
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