3 Reasons You Should Sell Your Business
Many business owners and entrepreneurs have found themselves asking the question of should I sell my company? It is a hard question to answer because so much goes into the building, growing, and structuring of a company. When it does come time to sell your business there are so many variables that the process can often become very murky and very difficult to traverse. There are multitude of reasons that a person could sell their business but there are only a handful of good reasons. This advice is only going to list 3 of the most common reasons that are given for selling a business. So the next time you are wondering if you should sell, think back to this and see how it stacks up.
The Time is Right
Timing is important in everything. If a car is not timed correctly it will not run. If a baseball player does not time a fastball they will strike out. If an owner does not time their business sale perfectly they will miss out on a great payday. The markets typically dictate when to buy and when to sell. If your business has been established and you have a great reputation, you are halfway home to a great sell off. Timing is key due to the amount you receive but also based on risk. The longer your business is in operation and the larger it becomes, the more risk is involved and it becomes more likely that a spectacular fall could occur. Remember, a business has great value but it has no liquidity until a transaction has been completed.
The Risk is Too High
Another reason CEO’s and founders give for selling the business is that they are simply tired of the risk. Running a successful business is a very risky venture. You are attempting to judge the markets and seek to fill a demand before it actually becomes a demand. The chances of failure are sky high and the number of failures versus successes is staggering. Many business owners are simply tired of the grind and the worry associated with the constant risk taking. Much like the blackjack player has to know when to walk away, so must the company owner. Should you sell your business? Only you can answer this question, but if you have been paying close attention to your business the chances are you will know when the time is right to remove the risk from your life.
Perhaps the most commonly used reason for selling the business is that the owner/founder simple ran out of steam. Many business owners invest 15, 20, maybe even 30 years in their business. At some point, retirement begins to sink in and they start looking for a way out. For others, they simply realize they are bored or that they need to follow another opportunity. This is very common.
Ultimately you need to remember that you are the owner and you have the final say. If you are considering selling the company do not simply ask, should I sell my company. Be prepared. Have a plan. Make sure that you are the one dictating the terms of the engagement and not the buyer.
Are you considering selling your business? We can help you. Contact us anytime at?http://www.newgatecapitalpartners.com/contact/.