Selling your business can be a huge step in your life and career, and at Twelve31 Advisors, our Advisors know that the reasons leading up to this decision are unique. However, some threads reoccur in business transactions, with common reasons for selling popping up among business owners. Here are four of the top reasons you might want to start positioning your business for a sale.
1. You’re Ready to Retire
When you own a business, retirement isn’t as simple as accepting a parting gift and celebrating with cake in the staff break room. Before you retire, you’ll need to decide what to do with your company, and many people opt to sell it.
Options for selling your business to retire include:
- Transitioning ownership to a family member who you’ve groomed to take your position in the family business over the years
- Selling to an employee who is already invested in the company and has the knowledge and passion to run it
- Selling the business to an outside entrepreneur who is looking for a way to get into the industry
2. You Want a Change in Career
Maybe you’re not ready to wrap up your career, but you’re burned out or bored of the industry you built your business in. On the other hand, perhaps you’re no longer enjoying ownership and are ready to take a different type of role in someone else’s company. In such a case, you may need to divest yourself of the business to make a career change.
3. You Built the Business with Selling It in Mind
Some entrepreneurs build a business with the end goal of selling it for a profit. This is especially true in rapidly evolving spaces, such as the technical industry.
4. You’re Not Able to Make the Business as Successful as You Would Like
Unfortunately, not every business sale is because the owner reached a success milestone in his or her career. In some cases, owners come to the realization that they don’t have the resources, time or talents to make the business successful or as successful as they like. In such situation, they might opt to sell the company rather than shut its doors, especially if the business still has potential.
Even if the company isn’t making money, something about it might be valuable to another business owner — perhaps you have a product that would be a perfect fit for someone else’s brand, or maybe you’ve developed a proprietary process that is attractive for established companies.