Reasons to sell your business

October 7, 2014



For Sale Sign

It is important for a business owner to be able to communicate the reason they want to sell. This is something buyers need to know. There are three good reasons to sell a business.

Retirement – you have built your business, you are happy with its value and have no one to leave it to.

Personal matters – such as poor health, a need to relocate or divorce.

Industry changes -The industry has changed and the company needs someone with the skills to keep up with these changes.

There are other reasons that will give a buyer cause for concern.

Boredom or fatigue – The buyer will wonder “how long before I am bored” or “Is this business too taxing for me”

Poor financial performance – No one wants to buy your headache. A business in decline will have few takers and will only sell at a fire sale price.

Other business interests – Selling your business because you have other business interests or are excited about starting a new career. Hearing this will make the buyer wonder if they too shouldn’t be looking into something else.

Loss of key personnel – Selling your business because you recently lost key personnel. This will not be an attractive proposition for a buyer. Buyers look for key stable employees to help them with the transition.

Anthony John Rigney is a Business Broker located in Jacksonville Florida. He is the founder and owner of Quorum Business Advisors, LLC.