Selling an Event Planning Business
Based on hundreds of real buyer-seller diligence conversations we’ve helped happen on Rejigg. These are the event planning topics that move price or slow a deal down: pass-through math, deposits and cancellations, venue reliance, staffing depth, and whether the company runs without the founder.
What buyers ask and how to be ready
Each topic below comes from real buyer-seller conversations. Here's what they ask, what they're really evaluating, and how to prepare.
Margins
How much of your 'revenue' is pass-through, and what’s the real gross profit?
Buyers want to see what you keep versus what you collect and pay out to catering, rentals, venues, AV, florals, and talent. Event companies can look huge on top-line revenue while making modest money once vendor bills are removed, and that changes valuation quickly. They also want job-level proof that your fees and markups hold up across different event types.
How to prepare
- Split revenue into fees, markups, and pass-through, then show gross profit for each.
- Pull job-level profit for your last 20–30 events and tie it back to the books.
- Include one “typical event” invoice with items labeled as at cost, marked up, and fee-based.
Great Answer
Last year, we billed $3.2M total, and $1.9M of that was pass-through for catering, rentals, and AV. Our planning and production fee and markup revenue drove $1.3M of gross profit, and you can see it by service line in the P&L and by job in the last 25 event summaries. Here’s a sample corporate event invoice that clearly labels fee-based, markup, and at-cost items.
Okay
A lot of our revenue is vendor spend, and our profit mainly comes from planning fees plus some markups. I can pull a handful of recent events to show the split.
Gives Pause
Revenue is revenue. Every event is different, but the financials are accurate.
How Rejigg helps: Rejigg’s secure data room lets you share job-level event P&Ls and a “typical event” breakdown with vetted buyers without emailing spreadsheets. Learn more in the guide
Cash Flow
How do deposits, cancellations, and vendor payments flow through cash?
They’re trying to separate real operating cash from client deposits that will be used to pay vendors and labor later. Event cash flow can look strong right before a busy month, then drop fast once venue, AV, and rental deposits come due. Buyers also want to understand what happens financially when an event cancels or reschedules, since that’s where refunds and vendor losses show up.
How to prepare
- Map a money timeline for a typical event: client payments and vendor payment deadlines.
- Build a monthly schedule of deposits collected, events delivered, and vendor payments due.
- Write down your policy for client funds meant for vendors and how you handle late final payments.
Great Answer
Our standard terms are 40% at signing, 40% 60 days out, and the final 20% due 10 business days before load-in. AV and tenting often require a 50% deposit before the second client payment arrives, so we track the gap and limit bookings based on our cash buffer. We can share an 18-month schedule of deposits versus vendor payments, plus three event cash timelines, including one reschedule.
Okay
We collect a deposit up front and final payment before the event, then pay vendors as invoices come in. We haven’t had major cash crunches, but I haven’t laid it out month by month.
Gives Pause
Deposits hit our account, and we just manage it. Cancellations are rare, so it doesn’t matter much.
How Rejigg helps: Rejigg keeps deposit schedules, vendor terms, and event-by-event cash timelines in one controlled data room so buyers can underwrite cash with fewer follow-ups. Learn more in the guide
Bookings
Where do your next 12 months of events really come from—and what’s actually booked?
Buyers want to see signed agreements, paid deposits, and dates on the calendar. They’ll compare that to your “soft holds” to understand how reliable the forward revenue really is, especially around wedding season and corporate Q4. They also want booked gross profit by month so they can plan staffing and financing.
How to prepare
- Create a forward calendar with: signed and deposited, signed not yet deposited, and soft holds.
- For each booked event, show expected gross profit and the person responsible for delivery.
- Summarize the last 24 months of events by channel with lead time, average spend, and cancellation rate.
Great Answer
We have 46 events on the next 12-month calendar. Thirty-one are signed and deposited, nine are signed awaiting deposit, and six are soft holds with written scopes pending. We track expected gross profit per event and summarize it by month, and we also have 24 months of booking history by channel with lead time and cancellations.
Okay
We have a strong calendar and a pipeline tracked through our CRM and email. I can export what’s booked and estimate profit for the bigger events.
Gives Pause
We don’t really track it. We stay busy because people know us.
How Rejigg helps: Rejigg’s data room makes it easy to share a booked-events calendar and signed scopes with serious buyers after they sign an NDA. Learn more in the guide
Owner Dependence
What would break if you stepped away for 30 days?
They’re gauging whether the company runs on a team and repeatable process, or on you personally. In event planning, the usual weak points are sales, pricing decisions, venue relationships, and who has the authority to fix problems on show day. Your answer affects price and how long buyers will ask you to stay involved after closing.
How to prepare
- List what you do in a typical week and assign each responsibility to a person or role.
- Define show-day decision rights, including who can approve last-minute spend onsite.
- Move key relationships into shared inboxes and do joint introductions before going to market.
Great Answer
I can step away for a month without events failing because our two senior producers run client calls, proposals, and onsite execution end to end. I’m still active in three venue relationships, but those are already shared with our sales lead and lead producer, and we do joint check-ins. If you want proof, I can share the org chart, role checklists, and the last six events I did not attend onsite.
Okay
The team can deliver most events, but I still handle pricing exceptions and a few key venue relationships. With a transition period, it’s manageable.
Gives Pause
Clients only want to work with me, and I’m usually onsite. The team supports, but I’m the main person.
How Rejigg helps: Rejigg lets you document roles, org charts, and a transition plan in the data room so buyers can see how delivery shifts off the founder. Learn more in the guide
Contracts
What do your contracts say about cancellations, postponements, and force majeure?
In event planning, contract language determines whether a cancellation is painful or survivable. Buyers want to know how your deposits, retainers, and reschedule terms protect you when vendor deposits are non-refundable or scope expands late. They’ll also look at how often corporate procurement forces exceptions and whether you have a consistent way to handle redlines.
How to prepare
- Organize current contract templates and summarize the key money terms in plain English.
- Pull a few real cancellations and postponements and show the financial outcome.
- Document how you handle procurement redlines and what you typically concede.
Great Answer
Our contract makes the retainer non-refundable and applies it to work performed, and our reschedule policy is tied to vendor refundability. We’ve had four postponements in the last two years, and here’s how each one settled, including vendor losses and what we recovered. For corporate clients, we use a redline playbook and keep a short list of terms we’ll flex on.
Okay
We have a standard contract with cancellation language and a force majeure clause, and we handle exceptions case by case. I can share the template.
Gives Pause
We try to be flexible. If someone cancels, we work it out.
How Rejigg helps: Rejigg’s data room lets you share templates and real cancellation examples with buyers in a controlled way after NDAs are signed. Learn more in the guide
Staffing
How do you staff: W-2 core team, freelance producers, day-of labor, union venues?
Buyers want to know if peak season works without burnout and whether your best freelancers stick around after a sale. They’ll also pressure-test labor cost surprises, like overtime, union rules at certain venues, and tight load-in windows that force longer shifts. A documented bench reduces risk for the buyer and makes growth feel more realistic.
How to prepare
- Map delivery roles and show staffing ratios for large events versus standard events.
- List repeat freelancers by role, typical rates, and how far in advance they book.
- Document your plan for weekend collisions and last-minute call-outs.
Great Answer
We staff most events with a lead producer plus an onsite coordinator, and larger programs add a logistics lead and runners. We have eight repeat freelance producers and a day-of labor list of 30+, with typical rates and availability documented. For union venues, we build load-in rules into the staffing plan and can show actual labor costs from recent union-site events.
Okay
We have a small full-time team and a reliable group of freelancers we reuse. We staff up in busy months, but it’s not fully documented.
Gives Pause
We just text people we know. It usually works out.
How Rejigg helps: Rejigg helps you share org charts, contractor lists, and peak-season staffing plans with qualified buyers in one place. Learn more in the guide
Channels
Where do bookings come from: venues, planners, agencies, or direct clients?
They’re looking for where demand really comes from and how fragile it is. Venue referrals can be steady, but a single preferred-list change can move your numbers quickly. Agency partners can bring volume, but they can also push pricing down and swap vendors when a new producer shows up.
How to prepare
- Break down the last 24 months of bookings by channel and estimate gross profit by channel.
- List top referral partners and note what’s documented versus purely relationship-based.
- Document what each channel typically buys and the sales cycle from lead to deposit.
Great Answer
Over the last 24 months, 45% of bookings came from venue referrals, 30% from direct corporate, 15% from agency partners, and 10% from weddings and social referrals. We can show lead time and cancellations by channel, plus our top 10 referral partners and how long we’ve worked together. We also track margin differences, since agency work often runs lower fees but higher volume.
Okay
We get business from a mix of venues, referrals, and some direct clients. I can pull a list of our main sources.
Gives Pause
Mostly word of mouth. We don’t track lead sources.
How Rejigg helps: Rejigg’s buyer vetting and direct messaging help you spend time with buyers who understand your channel mix and margins. Learn more in the guide
Venue Risk
How sticky are venue and hotel relationships—what happens if a venue manager changes?
Venue turnover can reset preferred lists fast, especially at hotels and multi-property groups. Buyers want to see multiple contacts at each property and a clear reason you get referred besides personal rapport. This also shapes the transition plan, since introductions and handoffs matter more when venue relationships drive bookings.
How to prepare
- List venue and hotel partners that drive meaningful volume and estimate their share of bookings.
- Identify at least two contacts at each key property and document relationship history.
- Write down why you stay preferred, such as your execution track record, niche expertise, or owned inventory.
Great Answer
Our top three properties drive about 35% of bookings, and we’re connected to multiple roles at each one, not just one decision-maker. We can show referral history by quarter and the reasons we stay on preferred lists, including execution notes and post-event debriefs. If one property goes cold, we have two alternate venue groups plus a direct corporate channel that fills similar programs.
Okay
We have strong venue relationships and have worked with the same people for years. If someone changes, we’d rebuild it, but we haven’t formalized a plan.
Gives Pause
That venue loves me. If the manager changes, we’ll figure it out.
How Rejigg helps: Rejigg helps you present venue concentration and a relationship handoff plan in one place so buyers can price the risk realistically. Learn more in the guide
Risk Controls
What’s your real risk profile: claims, alcohol, crowds, and contracts?
Buyers are pricing the odds that a single incident creates refunds, claims, or reputational damage. They’ll look for consistent insurance coverage, clear responsibility for alcohol service and security, and a plan for vendor failures and bad weather. Prior issues are usually manageable if you can explain what happened and show what changed afterward.
How to prepare
- Summarize insurance coverage and keep venue and client insurance requirements on file.
- Create an incident and claims log with outcomes and what you changed afterward.
- Document how you collect vendor insurance and who owns onsite safety and crowd control.
Great Answer
We carry general liability and workers’ comp, and for events with alcohol, we confirm the licensed provider holds liquor liability and names us when required. We’ve had two meaningful incidents in five years, and here’s what happened, what it cost, and the changes we made to staffing, vendor checklists, and onsite authority. We keep vendor insurance on file and can show the compliance workflow.
Okay
We have insurance and haven’t had major issues. I can pull policies and explain how we handle alcohol and security depending on the event.
Gives Pause
We’ve never had a problem, so we don’t worry much about it.
How Rejigg helps: Rejigg’s data room keeps diligence documents like insurance policies, incident summaries, and vendor compliance files organized with access controls by buyer stage. Learn more in the guide
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Questions Event Planning Owners Ask Us
What is an event planning business typically worth?
Most event planning companies are valued on the profit you keep from fees and markups, not the full event budgets that pass through to caterers, venues, rentals, and AV. The multiple varies with booking visibility, how dependent the business is on the owner, and how cleanly you separate pass-through from true gross profit. Start with Rejigg’s free valuation calculator, then check it against your last 12 months of job-level gross profit and staffing capacity.
Do I need a broker to sell my event planning company?
No. You can sell an event planning company without a broker and avoid paying 5–10% of the sale price for work you can run yourself with the right process. Rejigg gives you vetted buyer access, digital NDAs, a secure data room, and offer tracking so you can manage outreach, diligence, and negotiations directly. Start with the finding buyers guide, then list once your calendar, contracts, and margin story are ready to share.
How do SBA loans work for buying an event planning business?
Many buyers use SBA 7(a) loans to buy service businesses, including event planning, when the financials are clean and earnings are steady. Lenders usually want consistent profit, clear owner add-backs, and enough cash to handle the timing gap between client deposits and vendor payments. Model payments with Rejigg’s SBA loan calculator, and make sure your financial package explains pass-through costs so big invoices don’t get mistaken for big profit.
How long does it take to sell an event planning business?
Many sales take a few months to find the right buyer and agree on terms, then another 60–90 days for diligence and closing. Event planning can take longer when the transition needs to follow the booking calendar, especially if the buyer wants you present for a few high-stakes programs. You can speed things up by having contracts, a booked-events calendar, and job-level margin samples ready to share. See the due diligence checklist.
How should I handle deposits and deferred revenue at closing?
Deposits often become a negotiation because some of that cash is already earmarked for vendor deposits, labor, and upcoming event costs. Many deals treat deposits as a liability and adjust the cash left in the business at closing so the buyer is not paying twice. The cleanest support is an event-by-event schedule that shows deposits collected, vendor deposits paid, and what is still owed. Rejigg’s data room lets you share that schedule selectively during diligence.
What financial statements do buyers want for an event planning company?
Buyers usually want three years of profit-and-loss statements, year-to-date results, and enough detail to separate vendor pass-through from true gross profit. Expect requests for bank statements, payroll summaries, and job-level samples from recent events to validate margins. If your books mix client billings with third-party costs, diligence tends to slow down while everyone rebuilds the economics. Rejigg can import financials via QuickBooks integration and keep the backup organized.
What are common add-backs when selling an event planning business?
Add-backs are owner expenses that may not carry over to a new owner, like personal travel run through the company, one-time brand photo shoots, one-off legal work, or a vehicle that is partly personal. In event planning, buyers also ask about low-margin “at cost” jobs done to keep a venue or corporate contact happy, since those can drag down reported profit. Document each add-back with a receipt and a short note. Rejigg’s data room is a clean place to store that support.
How do buyers think about seasonality in event planning valuations?
Seasonality is normal in events, and buyers mainly price how stressful it makes operations and cash. They will look at whether peak months force premium last-minute labor, whether slow months create cash pressure, and whether double-booked weekends lead to quality issues or refunds. A calendar view that shows capacity limits, staffing plans, and collision weeks goes a long way. Keep a simple seasonality calendar plus a few months of deposit and vendor-payment timing in your diligence folder.
Should I sell based on EBITDA or SDE for an event planning company?
Many smaller owner-run event planning companies are priced off SDE, which is profit with the owner’s pay and certain owner-only expenses added back in. Larger teams are often priced off EBITDA, which assumes a manager layer and reflects operating profit before interest and taxes. The practical question is whether the business can run without you doing sales, pricing, and show-day decisions. If you want a starting point, use the valuation calculator and compare it to what it would cost to replace you.
What working capital is needed to run an event planning business?
Working capital is the cash cushion that covers timing gaps between when clients pay and when vendors need to be paid. In event planning, the gap often spikes when venues, rentals, and AV require deposits before the next client milestone payment arrives. Buyers may negotiate a target cash amount that stays in the business at closing so the next season is not starting underwater. The best prep is an event-by-event cash timeline plus a monthly deposit and vendor-payment schedule.
How do earnouts work in an event planning business sale?
Earnouts tie part of the price to future results, usually when the buyer worries bookings depend on the founder or a small set of referral channels. In event planning, earnouts are often based on gross profit or events delivered, since pass-through can make revenue a misleading target. Get specific about the measurement period and what counts as “earned,” and be clear on who controls pricing and staffing after close. Rejigg’s offer comparison dashboard lets you line up earnout terms side-by-side.
What should I expect for a transition period after selling an event planning company?
Transitions in event planning usually follow the calendar. Buyers often want you involved through at least one planning-and-delivery cycle so venue teams, agency partners, and corporate contacts see the handoff happen smoothly. A solid plan names which upcoming events you will stay close to, which introductions happen early, and when your lead producer becomes the primary face. Use Rejigg’s transition planning guide as a starting template.
What happens to my brand, portfolio photos, and testimonials after the sale?
Buyers will ask what marketing assets transfer, and event companies can get tripped up on photo rights and brand restrictions. Photographers, venues, and corporate clients sometimes limit commercial use, even if you paid for the shoot. Build an inventory of your best photos and videos and confirm you have permission to use them in marketing. Also, document ownership of your domain, website, social accounts, and testimonials. Put releases and usage terms in the data room so this does not become a late-stage surprise.
How do non-competes work when selling an event planning company?
Most buyers will ask for a non-compete so you do not sell the business and then start planning events for the same venues and clients right away. A reasonable scope usually matches your real market, such as your city or region, and covers the event categories you actually serve. The length is typically long enough for relationships and referral patterns to transfer. Use Rejigg’s negotiation guide to pressure-test terms before you agree.
Can I sell my event planning business if I use mostly freelancers?
Yes, as long as you can show the bench is real and repeatable. Buyers look for a core group of freelancers you use often, clear pay practices, and a scheduling process that holds up during peak weekends. They will also ask about backup coverage for critical roles like lead producer and onsite captain. The more you can show “who we use, what they cost, and how far out they book,” the smoother diligence usually goes.
What legal and compliance issues most commonly slow down event planning deals?
Common slowdowns include worker classification risk for recurring onsite labor, missing vendor insurance certificates, unclear responsibility for alcohol service and security, and inconsistent contract language around cancellations and force majeure. Buyers do not need perfection, but they do need organized paperwork and a consistent way you operate. We see deals move faster when sellers can quickly produce contracts, insurance files, and a simple incident log. Rejigg’s data room is built for that kind of diligence speed.
How do I keep the sale confidential with venue partners and clients?
Confidentiality matters in event planning because rumors can spook venues, freelancers, and corporate champions mid-season. A practical approach is to share sensitive details only after a buyer is vetted and has signed an NDA, then disclose key relationships in stages as the deal gets real. Rejigg handles buyer vetting and digital NDAs, and you control which documents each buyer can access and when.
What documents should be in my data room for an event planning acquisition?
Include three years of financials, job-level samples from recent events, contract templates, a booked-events calendar with deposit status, vendor and venue partner lists, and insurance policies and certificates. If you own gear, add an equipment and inventory list. Add an org chart with roles and a transition plan tied to the upcoming season. Rejigg includes a built-in due diligence checklist and a secure data room so you can upload once and share without email attachments.
