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.