Business Exits By Industry

Selling a Church Supplies Business

You've heard the naysayers - now isn't the time to sell a church supplies business. But what they don't know is that many entrepreneurs see church supplies businesses as a smart business investment.

According to the experts, there is currently a large volume of shadow inventory in the church supplies business market -- businesses that are waiting to be listed until the economy recovers.

At Gaebler, we think waiting for the economy to rebound is a mistake for many business owners. Selling a church supplies business isn't easy, but we believe sellers can achieve their goals in any economic environment.

How to Identify Prospective Buyers

Still looking for prospective buyers for your business? You probably already know several parties with an interest in acquiring your company. We frequently see qualified buyers emerge from the seller's network of business and personal acquaintances. In other cases, sellers take a proactive approach to finding likely buyers and contacting them directly. Competitors may seem like natural prospects and they are. The downside is that they won't pay top dollar and will probably absorb your company into their own.

Selecting a Broker

First-rate business brokers deliver prospects and profits to their clients. During the selection process, look for brokers with a proven track record of successful church supplies business sales. Take our word for it -- church supplies businesses are unique businesses and you need a broker who understands how to properly market your church supplies business to prospective buyers. The best brokers should also come with a list of references, a demonstrable track record and a proven plan for selling church supplies businesses.

Valuation Methods

Professional appraisers can use three methods to determine the value ofa church supplies business: The income method, the asset method and the market method. While the income method uses anticipated revenues as a value basis, the asset method focuses on the company's capital, real estate and intellectual assets. In many sales, the most accurate valuation comes from the market method which determines value based on the recent sales of similar businesses. A good appraiser will often use multiple valuation methods to arrive at a reasonable estimate. But regardless of the method that is used, it's always in the seller's best interest to increase revenue and asset values prior to a sale.

Share this article


Additional Resources for Entrepreneurs

Lists of Venture Capital and Private Equity Firms

Franchise Opportunities

Contributors

Business Glossary