There’s no right reason or wrong reason to sell a business. That said, it can be a challenge for business owners to figure out when it really is time to sell. The reasons for exiting a business are as varied as those cited for starting new companies.
Business owners who are feeling tired, bored, or held back may be wondering if those are really good reasons to sell. No one can make the decision for them. However, those who are still on the fence can read on to find out what their peers experienced before selling their businesses.
- A Lack of Passion
Sometimes, business owners just get sick of pursuing the same goals day in and day out. Whether they’re looking to retire or just want an exit strategy that provides the capital required to pursue a new line of work, it’s clearly time for a change. The good news is that, though selling a business can be complicated, listing your business is a simple matter of reaching out to a qualified broker.
- The Market Is in Decline
Markets change all the time, which can lead some businesses’ income to take a nosedive. If it’s clear that the market has peaked, or will soon, it may be time to consider an exit strategy. Business owners who wait to sell until their industries’ markets are clearly in decline may have a hard time finding buyers.
- Going in Different Directions
When business owners near the end of their careers, they often adopt more risk-averse management strategies. That can be a problem. If business owners find that they’re hesitant to put in the capital required to stay competitive, it may be time to consider turning the company over to someone new who is willing to invest in the company’s future.
- Desire for More Liquid Assets
It’s common for business owners to establish well-performing companies only to find that they have all of their net worth tied up in them. Young entrepreneurs may see no problem with that, but older business owners often prefer to convert their equity to more liquid assets. Selling the business is the simplest way to accomplish that goal.
- The Business Has Outgrown Its Owner
Few business owners relish the thought of watching their companies outgrow them, but on some level, it’s a good thing. Business owners who have nurtured a startup into a successful company may not have the resources to continue helping it grow and thrive, but a larger company or a group of individual buyers might be happy to invest in its growth. Selling now is a great way to both reap the benefits of the hard work it took to make the business a success and ensure that it will continue to thrive under new management.
Contact a Broker
Think it might be time to sell and have questions about how to proceed? The best thing to do is to contact a qualified business broker now. It can take some time for companies to get their finances and relevant documents in order and for brokers to find qualified buyers.