This Deith Realty blog explores why business owners decide to sell- and why it may be an option for you!
Why would an entrepreneur or business owner want to sell their business anyway?
Below are a few top reasons why business owners decide to sell their business. These reasons are made up of many different scenarios that a business owner might find themselves in. Anyone of these situations could happen to you as a business owner, or perhaps it is happening to you now.
New opportunities in business and life come up all the time! Whether your current business is successful or not, you might want to try another type of business if you see a good opportunity to get started in it. Before you do, you’ll have to sell your business first in order to finance your next adventure. Deith Business Brokers will help you find a business buyer that has the same passion to continue the success of your business.
Orchestrating Your Business Sale
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A business that is continuing to grow and make money is certainly a business worth selling. Investors and buyers love to purchase businesses that are already making money. That way, after they purchase it, they can just jump right in and take in the profits too. Buyers are usually willing to pay a price that is above market value if they feel the business has the potential to keep growing. As a business owner, you might want to take advantage of this opportunity to sell your business for big money while things are still going well for it.
No one wants to think negatively when they run a business. However, there is always the chance that a growing business could stop growing someday and then start to decline. If you pass up the opportunity to sell your business during the growth period, you may regret it later if things start going badly for the business. You might not want to take a chance on passing up the opportunity to sell if you feel the business could possibly go south someday.
If the overall national economy is good and consumers are spending money regularly, then investors are going to be interested in purchasing businesses so they can get in on this action. A buyer’s market like this means there’s going to be a lot of hungry buyers out there looking to purchase a business at any cost. In a way, it is just like the real estate industry whenever there’s a buyer’s market. Buyers will pay above value prices for businesses just like they would for real estate.
As a business owner during a buyer’s market, you’ll have a wide selection of buyers to choose from when you go to sell your business. This means you’ll get multiple offers from buyers after you start advertising your business for sale. It may even end up being a bidding war between these buyers, which means more money in your pocket. Therefore, consider selling your business during good economic times.
An Offer You Can’t Refuse
On rare occasions, a business owner might not even be thinking about selling their business until a buyer presents them with an offer they can’t refuse. This would be an offer out of the blue which is so attractive to the owner, that they can’t pass it up. Such an offer would obviously be priced way above market value for the business. Since these kinds of offers are rare, you probably wouldn’t want to pass it up because you may not get another one in the future.
There are lots of reasons why a buyer would present an offer to a business owner who hasn’t listed their business for sale. The buyer might feel passionate about your particular business and feels they can run it even better. They may also be a competitor of your business and are looking to expand by purchasing your business and merging it with theirs. Whatever the reason is, it will be an attractive deal for the owner.
The classic reason for someone to sell their business would be to retire. Perhaps they spent the last 30 or 40 years of their life running the business and now they want to fund their retirement. What better way to fund a retirement than to sell a business? Even if you already have retirement accounts set aside, selling a business can give you that extra amount of money that you need to pay off your mortgage or purchase a new house to retire in.