NON-PROFIT ACQUISITION EXPERTISE NEEDED - 3 QUESTIONS
I am currently exploring an acquisition of a Non-Profit entity that has a focused product with substantial growth potential. The business was originally structured as a Non-Profit 25 years ago to take advantage of free access to space and tax benefits, effectively lowering the expenses of the company.
A few questions:
1. Does it make sense to re-incorporate the business as a B-Corp for profit, or retain the non-profit status and create a secondary for-profit entity?
2. How would it work to acquire a Non-Profit and use seller financing to pay out the owner? If you can't distribute profits - would you be able to do this? (ie - can you do an annual Consulting Fee?
3. How could you work with a minority investor to acquire the Non-Profit and be able to distribute returns to the investor?
Thanks for the expertise/help