Common Reasons for Selling
Selling one’s company is no small feat by any means and thus it makes sense to conclude that so is not deciding to sell it, too. In most cases, sale of a business is driven by some event. Whether the decision to sell is triggered by a negative or positive event, the reason may have a lot of weight on the whole selling process and needs to be clearly communicated to the potential buyer. Some of the selling triggers are:
Boredom or Burnout
Owners who spent a lot of time developing their business may experience boredom or burnout. Is then when running the company loses its charm and owners start to feel tired and craving change.
Divorce or Illness
Divorce or illness is an example of a rather negative sale trigger. Personal health and relationship problems can understandably undermine one’s focus to operate a company and decision to sell may be the best course of action at that particular time.
Whether family related or not, outside investors may be putting too much pressure on the owner in order to recoup their investment.
No Heir Apparent
When business owners have no apparent heir in the family or none of the relatives have an active interest in running the company, they are forced to keep operating it as long as they can and then they eventually have to sell to an outside buyer.
Competition Is Around the Corner
Fierce competition may have just appeared in the marketplace and should the owner sense trouble, they are better off selling it before it becomes an issue.
Offer Out of Nowhere
Owners can be positively surprised by an unsolicited surprise offer that may be too good to pass.
The above scenarios represent just a few examples. Other triggers may be increased prices by suppliers, losing a major customer and others. In any cases, when you start to sense that selling your business is the way to go, it is never too late to start working on the exit strategy. Our business brokers will gladly assist you with assessing your business and implementing the plan.