Advice on Niche Market Exit Planning
Selling a Transdenominational Churches Business
Unfortunately, many sellers are waiting to list their transdenominational churches until the economy fully rebounds. We think that's a mistake because for the right buyers, transdenominational churches are a great investment.
Intimidated by a sluggish economy, business buyers are more cautious than ever.
If you're ready to move on, now is the right time to sell your transdenominational church.
Selling a Transdenominational Church to an Employee
Employee sales have pros and cons. A faithful employee may have the motivation and ability to continue to operate the business. If you need to sell quickly, the timeframe is condensed in an employee sale because you don't need to track down a buyer. However, some employees feel they are entitled to special treatment and pricing, especially if they have played a key role in the company's success. Most of the time, employees also expect owners to finance a large portion of the sale. So if you aren't willing to finance the sale or need to get top dollar for your transdenominational church, a sale to an employee is probably not a possibility.
Sale Preparation Timeframes
There are no effective shortcuts for selling a transdenominational church. Since buyers prefer to see evidence of future cash flow, you'll want to to strategically lock in cash flows and increase profits before you list the business. Next, the business will need to be documented in professional financial statements and manuals that facilitate the ownership transition. Since all of this takes time and effort, a transdenominational church can rarely be ready for the marketplace in less than six months. If you can afford to wait, we recommend investing a few years in improving your business's financial position before you put it on the market.
Professional Appraisals
There is no substitute for a qualified appraisal in the sale of your transdenominational church. By hiring an appraiser to conduct a thorough appraisal of tangible and non-tangible assets prior to listing, you get a measure of the true worth of your business. Although the appraised value of your business may not be the same as the sales price, you gain valuable insight that can be used to your advantage during negotiations. If you're disappointed with the appraiser's estimate of your company's worth, you have the option of seeking a second opinion. However, it's more often the case that you will need to adjust your expectations of your business's value to buyers.
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