Busines owners who sell thier business

Why do Business owners sell their businesses

Why do Business owners sell their businesses

There is a 101 reasons why business owners sell their business.
Some people have a very specific goal or reasons why they sell and have been working towards that goal for a number of years.
Lucky them, not everyone is that prepared.
They are not all planned and a large percentage of them never sell as the owner have not planned the sale.
In some cases they do sell but are forced to sell in less than ideal circumstances. When this happens the owner may not get nearly as much as he would have, had they adequately planned.
If you have a plan in place and have achieved that plan, even if you are forced to sell you will get a great price for your business.
I cannot emphasise it enough. Put a plan in place to sell your business. Even if you are not going to sell it.
That way if any of the reasons listed below happen. The business can still get sold if need be.

We will start with the:

  1. Want to retire.
  2. Want to implement a succession/exit plan.
  3. Want to cash out so that you can invest in something else.
  4. Want to cash out because you have already made enough money to live comfortabley.
  1. Business growing too fast for owner’s own comfort level
  2. Owner does not want to tackle current challenges of business
  3. Owner’s personal skills are insufficient for successful management of the business
  4. Want to raise capital for other personal uses
  5. Want to pursue other types of business opportunities
  6. Must raise capital to accommodate business growth
  7. Want for a lifestyle change
  8. Want new challenges
  9. Next generation not up to task of acquiring business (or not interested)
  10. Want to relocate

Now the above are mostly planned or if not planned the business had already planned for a sale and so they still did well in the sale. So what are the reasons owners sell when there is no planning in place.

  1. Death is an obvious one. And the person coming after you has to come in and sort out the business.
  2. Burn-out, boredom and fatigue is a common one.
  3. Health issues or health scares.
  4. Divorce – Happening more and more now in Ireland.
  5. Disputes with co-owners
  6. Business is losing its competitive advantage(s)
  7. Owner loses the “fire in the belly” to compete with new start ups.
  8. Losing a major customer/client
  9. Losing a key employee
  10. Family illness
  11. Owner recognises his business is in a declining industry
  12. Increased competition
  13. A significant job opportunity arises
  14. Owner overwhelmed by the demands of the business
  15. Owner knows the business has reached its peak
  16. Owner receives an unsolicited offer
  17. Business is struggling or unprofitable
  18. Owner realises he’s an entrepreneur, not a manager
  19. Owner lacks capital to invest to continue the business
  20. Family disputes

The above is just some of the reasons busineses owners sell thier business.
Make sure your business exit is planned and not left to one of the reasons above when you suddenly find yourself having to sell the business quickly.