There are many reasons people chose to sell their business, ranging from retirement and simple lifestyle changes to ill health.
There is value in most businesses so if you’re ready to move on there is always likely to be a buyer for your business no matter the reason you are choosing to move on. I have put together a list of the most common reasons people choose to sell their businesses, hopefully you will find something you can relate to if you are considering selling your business.
Often business owners instruct our agency to sell their business simply to pull out their capital after years of hard work.
At present it's the perfect time to release the full value of your capital due to the sheer number of buyers in the market. This is a result of the present favourable economic conditions due to low interest rates available to business buyers and the growing economy.
Although it may be possible to relocate your business, there are many challenges such as dismissing or moving current staff, hiring new staff, moving property and potentially changing suppliers. In most circumstance business owners choose to sell and move on – often buying a similar business with proceeds of their sale. From a valuation perspective, this is often not detrimental to the amount you will receive for your business as long as you’re not in an immediate rush to move.
Owning a business that is struggling is no fun. We all have limits to which we can persist with an operation before enough is enough and we need to look to pastures new. Fortunately there are always entrepreneurial buyers that will look for this type of opportunity, bringing a new energy to the business that they feel could push it on. This is type of business sale is more common than you think and our team is well versed in ensuring that we maximise the seller value in this situation.
Retirement is the most common reason we see for a business sale – although at the same time we are seeing a greater number of retirees buying lifestyle businesses to remain active.
Typically selling due to your retirement will provide you with plenty of time to plan your exist strategy and achieve the maximum sale value for your business.
It is estimated that each year over 80,000 businesses with turnover of less than £10m and owners aged over 60 wind up their solvent business each when they could have been sold. Don’t be one of these people, realise the value of your business.
New opportunities identified elsewhere
As a business owner and entrepreneur, you may have identified an opportunity in a different sector of the market or a different industry. In order to realise this opportunity you might have to realise the market value of your largest asset – your business.
Unfortunately this a common reason for selling a business. Many small businesses are highly reliant on the owner, therefore when the owner becomes ill the business will struggle. The key in this circumstances is to try and act as fast as you can to get the business on the market with a business transfer agent.
Business in demand
If you are in a business where there is strong buyer demand due to the growth of the industry and favourable buyer conditions, then there might be a price that is simply too good to turn down.
Ultimately every decision to sell a business is based on individual circumstance. Hopefully by reviewing our list of common reasons for selling a business you can see that there are many reasons for selling a business.
If you're looking to sell view our free business valuation page or see more of our how to sell a business guides.
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