Owning your own business can be both exhilarating and aggravating. It is great to be the final decision maker – the boss, as it were – but also a significant responsibility. After a while, it may seem too much of a burden even if you are successful. With that last thought in mind, here are three reasons why you should consider selling your business:
1) Times are changing
Interest rates are at an all time low and that means that the cash flow that a successful business generates is in great demand by investors. A business owner risks losing a premium for the sale of his business when those interest rates rise – as they surely must in the future. On another front, the business climate changes on a continual basis and any owner who ignores or misreads these changes could see his business deteriorate or even
2) Personal Issues
Similarly, events can occur in a business owner’s personal life that make selling a business the sensible thing to do. For instance, a family member or the business owner themselves may become ill or otherwise incapacitated. The need to devote more time to family matters will inevitably lead to less time devoted to the business. Not only is this situation considerably stressful but can lead to unsound business decisions being made.
3) You are getting older
Time waits for no man and it won’t wait for you. There comes a time in every business owner’s life when they need to consider retirement. While some will opt to pass the business on to their children, others will want to sell. It is essential to sell at the right time. This fact means that a business owner need to start the selling process early – a year or two at a minimum – to allow them to get the best price.
As you can see, there are numerous credible reasons to sell a business. It may not be what the business owner wants but it is what they need from a financial perspective. Making the decision is difficult but some expert advice on the subject can make it a little easier.