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Jan
22

Common Reasons for Owners Selling their Business – 2

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Common Reasons for Owners Selling their Businesses - 2Reasons for Owners Selling

There are many reasons why owners let go of their businesses. Some might find it hard to let go because it has given them a sense of accomplishment over the years and they might have developed a personal sense of attachment for it. Nevertheless, that does not stop them from selling their business in the long run, after all it should be all about the ‘business and never personal’. Here are common reasons why for owners selling their businesses.

Growth

This might sound crazy. But it is true that owners sometimes ditch their businesses because business growth stirs up a host of problems for them. Many small-sized businesses cannot cope with growth. Others do not have the required skill sets or investment requirements to march on. This can impede growth and give the competition an undue advantage to muscle in and take their market share. Opportunities for business growth can indeed be a blessing and curse.

Losing Interest

Many business owners start with a dream and work their way towards success. After achieving what they sought out to achieve, disinterest can set in. A decline in contribution towards a business will eventually take its toll.  Moreover, personal commitments might be gnawing for attention and winning the war towards pulling owners away from their businesses.  Your business might suffer a sharp decline and you might just think that you should get out before the value of your business plummets totally.

Alternatively, other people lose interest with day-to-day operations. Once they have succeeded erecting a business and made it work, they want to move on to the next big thing. So for them, selling is the only way to find something else that will motivate them.

Other People are Selling

Keeping tabs on the current trends and changes in the industry or surroundings is also a common denominator that sways people into selling their businesses. Many industries go through surging acquisition cycles where business evaluations increase substantially. Some people stay on these types of acquisitions in their industry or areas of business, when they gauge a flurry of activity and the numbers are looking good, they sell off.

Pressing Problems

Some people find themselves needing emergency money to offset certain things. Small businesses are assets. And since most of them are managed without succession plans or a board of directors, an owner can exit the business on his own terms and use the money to deal with his pressing problems.

In addition, depending on the market and industry a sale might not happen as quickly as you might think. You would not want the Revenue Canada embarrassing the new owners about the business they bought off you, now would you? It is best to be prepared and patient, not selling off for quick cash. Try to also get all your paperwork in order as well.

By: Alam Qureshi is Broker of Record with ProClient Brokers Inc., Brokerage. To know more about Selling your Existing Business or Buying an Established Business for Sale in Ontario, go to my website: http://proclient.ca or call 416 364 5550

Categories : Blog, Tips/Articles

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