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5 main reasons to sell a business
There are many reasons to sell a business. The following 5 are the most common ones. To find out more, call us on +49 (0)221 5694-457 or arrange your free review today.
1. No or unclear Business Succession
2. Business Life Cycles
3. Receive Selling Approach from Outside
4. Are you an Entrepreneur or a Manager?
5. Time, Lifestyle Change
1. No or unclear Business Succession
Through previous decades many business owners have built successful businesses but wish to retire for private reasons. In best case the business can be handed over to a member of the family. However, in many cases no suitable successor is in sight. In this situation the best alternative is to consider a sale. Thus the company stays in business and the jobs of loyal long time staff are secured.
2. Business Life Cycles
A typical business life cycle sees rapid growth in formative years as each business develops from Start-Up status into a medium sized company. Once the business reaches this size it is often necessary to inject considerable capital into the business to maintain the level of previous growth. At this stage many business owners have a stable and profitable business and feel less inclined to make a major financial commitment. At this point a decision is made to sell the business and allow a new owner, with greater financial resources and commitment to ensure the continued expansion of the business.
3. Receive Selling Approach from Outside
An approach from a potential acquirer can be the catalyst required to change a business owners mindset from running and developing a business to enjoying the often considerable proceeds of a potential company sale. Approaches are typically made either from an external organisation or from the internal management team (commonly known as an M.B.O. or Management Buy Out). Many business owners experiencing such an approach take advantage of our Negotiation only service..
4. Are you an Entrepreneur or a Manager?
Many owners of privately owned companies have a strong entrepreneurial spirit and building a business is an exciting and dynamic time. However all businesses inevitably require adherence to policies, procedures and legislation. All this consumes an ever increasing proportion of the day for each business owner, increasingly pulling them away from the exciting and dynamic environment. For many owners, the motivating elements of growing and running a business becomes far less evident.
5. Time, Lifestyle Change
Building and running a business often requires considerable commitment. It rarely allows business owners the luxury to take extended breaks away or the care free option of simply working 9 to 5. Because of this, whilst business owners develop and expand their businesses, there is little time left for family and social activities and holidays. For this reason many business owners choose to reap the rewards of their labour and sell their business, using the proceeds to regain lost time.
If you plan to sell your business or simply want to find out more, arrange your free review today, or call us on +49 (0)221 5694-457.
