As an entrepreneur and business owner, there comes a time when you feel the need to sell the business you have been building all these years; years of unwavering dedication, hard work, and sacrifice to get your business where it is today. Perhaps it’s time to move on to something else. If you are thinking of selling your business, it can certainly pay off in a big way. According to A Neumann & Associates, LLC, business brokers help their clients sell their businesses by determining the market value of their company and finding qualified buyers who have the capital to make a deal. Here are five reasons why a business owner would sell their business and how you may fit in one or more of these categories.
Risk Assessment too High
Maybe your risk assessment is too high, and therefore, continuing to run your business is just too unpredictable. This is most likely influenced by dwindling sales figures, or you just barely break even each month and want the weight off your shoulders. You probably felt the last couple of years was like hanging on by a thread, and you may be uncertain how long business operations can hold together. This is the perfect opportunity to move on because the longer you hold on, the riskier it can get, and you don’t want the volatility of running a business to affect your financial goals. You can transfer the risk to a willing buyer who can take control of the business and maybe turn it around.
Preparing for Retirement
Wanting to retire is a reason to sell your business that you’ve spent decades building, growing, and nurturing. By now, your business has generated plenty of revenue over its years of operation, so you can cash out and use that hard-earned money for your retirement. Selling your business can provide the retirement plan you’ve always dreamed of, and you can use that money to fuel a lavish and laid-back lifestyle.
Sudden Life Changes
Unexpected events can happen that can affect an entire business, such as economic hardships and abrupt market changes. Or perhaps, changes in your personal life are urging you to sell your business. Maybe your health took a turn for the worst and is affecting your productivity and performance, in which case, turning over the keys to your business to someone else may be the right option.
Transferring the Business to Someone more Capable
When it’s time to hand over the keys to your business to someone else, you want a qualified buyer who has the capital and industry knowledge to keep the business alive. If your business is doing well, profits are growing, and sales look stable, the likelihood that your business will sell exponentially increases. A business is most valuable when its profits are increasing year by year, which is very appealing for potential buyers. In addition, if the economy is doing well and the buyers’ market is looking favorable, you can get offered prices that are too enticing to refuse. Buyers can be compelled to go on bidding wars for your business, and you can evaluate which bidder is the most appealing to you.
The Need for Liquid Cash
Perhaps you need cash right away, and you don’t necessarily want to operate the business anymore; that’s okay. There are many reasons to liquidate your business; maybe you need cash to travel around the world, devote time to a new hobby, start a new company, pay off medical bills, or another scenario. Whichever the reason, selling your business can provide you with liquid capital to accomplish the items on your to-do list. In some rare instances, a potential buyer may like a certain aspect of your business and may offer you an amount that is many times more than its base market value. It can definitely happen, and if it does, you will be glad you sold your business. After all, with all that liquid cash you will be sitting on, paying off your mortgage would be easier than ever. Perhaps moving to a new location is something you want to do, or even become an investor and fund startups.