5 reasons for selling your business
Many business owners and shareholders come to a time when they consider selling their business. BCMS clients generally sell for the following reasons:
1. A change in lifestyle
After many years running the business the owner just wants to do something else with their life: retirement, buy that yacht, move abroad, release enough money not to have to worry. All business owners have these dreams.
2. Entrepreneur versus manager
Owners are usually energetic entrepreneurs, yet, as the business has developed, they have become managers, often stifled by managerial and personnel responsibilities.
3. Time
A business can become all consuming and demanding on the owner's time, leaving little leisure time. If the business is sold, the owner gets the freedom and time they crave.
4. Business life-cycle
Companies often grow well in their early years of trading then sales start to level off. At this point
- A. investment is needed and if it is made
- B. the cycle will repeat itself or
- C. the business will delay
If the owners do not want to invest, they will benefit from a sale.
5. An approach
A business owner receives an approach from a potential buyer and this has prompted them to examine their options - time, money, retirement, moving abroad and so on.
Don't enter the negotiation choice without having a choice of buyer.
However, whatever the reason for selling your business, make sure you get the right choice of buyers. Find out more about maximising the value of your business.
