Why sell a business?
The reasons for selling a business are diverse. These are the most common:
1. Lifestyle change
“I’ve been running the business for years but now I want to follow my dreams. I want to retire, play some golf, sail, and get away for a while to reassess what I want to do.” After years of building a company, many owners find themselves ready for a change. Some want to diversify the risk of having the majority of their assets tied up in the company. Others want to enjoy the fruits of their labor and spend a little on themselves. For others it’s a matter of spending more time with their children and family. Others are raring to begin giving back to the community or a favorite non-profit or charity.
2. Entrepreneur versus manager
‘My idea was successful, and that’s great, but I don’t want the boring everyday trouble of running the business. I feel I have achieved a lot, but the business is just not what it used to be.’
Most entrepreneurs get a charge out of building a company and developing a client base. Over time, the challenge of surviving and then growing has shifted to the mundane and repetitive task of dealing with administration and personnel issues, tax, and regulations.
3. Time
‘My business is taking over my life! I want more time to relax.’
4. Business life cycle
‘My business growth is beginning to plateau and will require a significant cash injection and a great deal more of my time to keep it growing. However, at my time of life I am not prepared to undertake such a large outlay of time and money. It’s time to let someone else take the risk and meet the challenge.’
5. An approach
'Somebody told me they are interested in buying my business. I’m flattered and seriously thinking about it.’
