5 Reasons To Sell Your Business Now
You’ve spent years of hard work, dedication, and sacrifice to grow your business to its current standing. Although the thought has crossed your mind a number of times, you’re not entirely sure selling your business is a smart move.
In certain situations, it might not be wise to sell your business. But those times when you should, it’s absolutely worth it and can pay off tremendously.
Why Should I Sell My Business?
As an entrepreneur, you’re familiar with making wise financial moves after careful considerations. And selling your business is definitely one of those.
Of course, there are reasons to hold on to your business. But they may not be beneficial for your financial health and general life choices.
Here are some reasons to consider an exit strategy and reap the fruits of your labor while you can:
Running a business is a risky endeavor. The forces that influence a business’s success can be too much to handle at times.
You may find you’ve spent the last 5-10 years hanging on by a thread. You don’t know how much longer the thread will hold things together.
This may be an excellent time to move on from the business. Because the longer you hold on, the riskier it gets. You don’t want the volatile nature of running a business to catch you at a bad time.
Consider transferring this risk to someone else while you take the cash and move on to something less risky.
Sometimes it’s as straightforward as this: You’ve spent 3 to 4 decades of your life building, growing, and nurturing your business. Now, it’s time to rest. You can sell your business when the desire or necessity to retire comes.
Selling your business can finance your retirement plans — whether you intend to pay off your mortgage, move to a new location, buy a new house, or start another kind of business.
Ensure that your profit from the sale of your business is sufficient to fund these plans before moving forward with them.
The world is constantly changing. You can change as well. You’ve probably lost interest in your current business. And that’s okay, boredom usually sets in when we do the same things for a long time.
You can sell your business and use the money to pursue a new interest. As opposed to running two businesses at once, dedicate your full attention to your new venture and ensure its success.
Also, changes in your personal life can influence your decision. Maybe your health took a different turn. For a job that requires constant activity and movement, certain health conditions can affect your productivity and performance.
In those cases, your business may fare better in different hands.
Times change, and then make it necessary to put your business up for sale. For instance, technological advancements create solutions that become widely used and make it hard to compete.
Or industry regulations that cause major changes that are hard to keep up with.
In both cases, you may not have the money or resources to adjust to such changes. Then you need someone with the capital to take over and keep the business alive.
A business is most valuable when it’s bringing in increasing profits year after year.
In another scenario, your business is doing well, and profits are growing. This could be a viable sign to put your business on the market. A business is most valuable when it’s bringing in increasing profits year after year.
Some sellers believe that is the peak of their business performance and an excellent point to make an exit.
Also, if the economy is great and the buyers’ market is booming, you can get offered prices that are too hard to refuse. Buyers could even go on bidding wars for your business and that means more money for you.
Also, it may be as simple as converting the value of your business to liquid cash you can use for various purposes.
Maybe you need cash to travel the world, chase a new hobby, start a new business, pay medical bills, or attend to another emergency. Whatever the case may be, selling your business can provide you with the liquid capital to do what you want.
On some occasions, a buyer may pick a particular interest in your business. So they offer you an amount many times above its market value. It’s a rare opportunity most people won’t miss.
Before you sell your business…
Watch your timing
There’s an excellent time to sell (during an economic boom or when profits are on an upward trajectory) and there’s a bad time to sell. Pay attention to your timing and be sure it’s the right time before going to market. Right timing means more profits from the sale.
Prepare the business
When you decide to sell, prepare early. Put financial records, business structure, and customer base in order to make your business more attractive to buyers.
Our experienced M&A Team of pros can help you with all of this and more!
IAG M&A Advisors is a business intermediary consulting firm, facilitating the buying & selling of businesses. With over 100 years of combined experience, the IAG team has been a leader in the industry by helping the owners of privately held companies “cash in” on all their hard work and get the best payoff possible.
We are here for you if you have questions about selling, and ready to help you get started when you are ready.
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