Reasons for selling your business
There may be some reasons why you are looking to sell your business:
Change in direction
Medical, health, personal and family reasons
Been approached by an interested party
Shareholders split in direction
Divorce -In a divorce decree, it’s seldom declared that the spouses should settle equity interests in a business and split the rewards with their ex-spouse. Again, this bad news position for the couple can be a good news situation for a considered business buyer because the divorcees may be eager to move fast and get the issues behind them, even if this involves selling the business at a lower-than-desired price.
The shift in direction – Business proprietors do best when they have a strong track record of positive cash flows and the prospects for the firm to continue to do well in the future. In a booming economy, prospective buyers often get euphoric and become unrealistic about the prospects for a company. They tend to overpay. Selling business owners know this, and that’s why you’ll see more business-for-sale activity in a booming business than in a flat or down market.
Medical Enigmas -It’s very common for a business owner to have a debilitating medical crisis, either personally or with a loved one, that prevents them from continuing to own and operate a business. In some cases, these sellers are selling under duress, which can work for business buyers.
Cashing Out -You don’t have to be on the brink of retirement to be in a tone where you want to spend more time on the golf course, buy that BMW you’ve always wanted, or travel around the world in style. In some cases, sellers will cash out on business just to have the financial freedom to enjoy life a little more or spend more quality time with the family.
Ready for Retirement – This is an increasingly common reason for selling a business. With baby boomers who own companies all suddenly starting to think about retirement, the belief is that there will be a significant increase in the supply of businesses for sale. The good news for business buyers because it will put down pressure on pricing for business-for-sale transactions.
Individual Exhaustion – Some business owners sell because they are tired. Maybe the business is too dependent on the effort of the proprietor, and the owner cannot extricate themselves from work overload. Buyers entering this type of selling situation should make sure that they are not setting themselves up for exhaustion, similar to that of the previous owner.
Ready for New Challenges – The owner of sale may solely be looking for a change of scenery. A great chance for the buyer, especially if the business is running well and is not overly reliant on the efforts and talents of the current owner.
Each of these situations can be stressful to deal with and as you already have your hands full running your business. I can help you through the selling process – right from the start means you can concentrate on what you do best and keep your company running smoothly as this is the most important time for you not take your eye of things!
Chris Spenner’s has been in your shoes in the past and will be on hand at every stage of the selling process to handle the sale of your business, keeping you informed, giving you advice and support at every step of the transaction.
If You have a reason for selling your business and need a free consultation, don’t hesitate to reach out and see if we can help you with your business transaction.